Shandong Ruyi Investment Holding, a textile and apparel company in China is reportedly looking at a stock offering for its newly acquired LYCRA business.
Bloomberg reported the company’s plans after the completion of the purchase from INVISTA, a privately held company owned by the Koch family.
LYRCA was a key part of the DuPont nylon business which was sold to Koch in 2004. Following the sale, Koch and DuPont battled over terms of the transaction but later reached a settlement.
Wichita-based INVISTA continues to operate other nylon businesses that include Stainmaster Carpets.
The new company will operate as The LYCRA Company, an independent subsidiary, with its headquarters in northern Delaware. As Bloomberg noted, LYCRA demand has remained strong, thanks in part to growing sales of yoga pants and skinny jeans.
“We are fortunate to be purchased by Ruyi, a company that shares our vision and our commitment to delivering high-quality products, technical expertise, and unmatched marketing support to our valued customers,” said Dave Trerotola, chief executive officer, The LYCRA Company. “With the continued investment of Ruyi, we look forward to working with our customers to bring exciting innovations to market. Our new shareholder’s textile and retail experience will be a tremendous asset as we develop differentiated fibers that deliver the lasting performance benefits consumers have come to know and expect from our brands.”
The LYCRA Company will start day one as a fully operational subsidiary of Ruyi Group, with operations in various countries, among others the UK and the Netherlands.
The transaction also includes eight manufacturing facilities, four research and development labs, 17 offices located in 14 countries around the world, and approximately 3,000 employees. Current leadership and employees will continue in their roles with the new company.
“We are thrilled to acquire The LYCRA Company and will continue to invest in its innovation pipeline and brands in order to reach our objectives for business growth,” said Yafu Qiu, chairman of the board of Shandong Ruyi Investment Holding. “As a spandex producer ourselves, we have admired the iconic LYCRA brand for years, and we see the value The LYCRA Company adds to our business. We believe its assets and capabilities are a perfect complement to our own and will help strengthen our position as a world-class, fully-integrated textile company.”
The Ruyi Group primarily focuses on textile offerings with operations spanning from raw materials and textile processing to the design and sale of apparel. Since 2016, the group has acquired several international luxury brands including Aquascutum, Sandro, Maje, and Claudie Pierlot.
Headquartered in Jining, Shandong, the hometown of Confucius and Mencius, Shandong Ruyi Investment Holding operates 13 domestic industrial parks. The company also has a significant distribution and retail network that services a global customer base spread across six continents. To learn more, visit www.chinaruyi.com