Invista may be looking to cash out on its Apparel & Advanced Textiles business and has retained an investment banker.
The business has offices in Delaware. Invista acquired the fiber business from DuPont.
The Koch Industries company announced Friday is it looking at alternatives that include selling or marking further investments.
Brands include the household name of Lycra as well as Coolmax fiber.
“A key element of our Market-Based Management business philosophy is to continuously assess the external value of our assets against our internal value to make sure that the asset is owned by the company that values it most highly,” said Jeff Gentry, Invista CEO.
“The Apparel business is a strategic part of our portfolio—we are extremely pleased with the results of the business and remain confident in its continued and future success. We are simply considering all available options,” Gentry stated. “In the event that no other company values the business more than we do, we will gladly hold the business and continue to invest for the future.”
Invista has retained Goldman, Sachs & Co. to assist the company in exploring strategic alternatives.
Invista acquired the DuPont fibers business in 2003. The two companies went through a prolonged period of litigation on environmental issues. A settlement was announced in 2012.
Invista has a small presence (100 employees as of 2014) at the former DuPont nylon plant in Seaford that at one time employed 4,000 as well as hundreds of jobs in northern Delaware.
Invista is one of the world’s largest integrated producers of chemical intermediates, polymers and fibers. The company’s advantaged technologies for nylon, spandex and polyester are used to produce clothing, carpet, air bags and other everyday products.
Privately held Koch operates in petroleum, wood products, agribusiness and other industries. The firm is controlled by two brothers who have contributed heavily to conservative causes and candidates.
Despite their philosophy, Invista the Kochs have not been adverse to state funding.
The company raised eyebrows in getting $14 million from the State of Delaware for retaining jobs. At the time, the $40,000 per job incentive was viewed as a hefty price for retaining jobs, given the long payback period from income tax revenues.
Other incentives to companies to keep existing jobs have been less generous.
Invista has more than 50 locations around the world. For more information, visit INVISTA.com.
