NEWARK- The Lycra Companya major textile company that supplies the clothing and personal care industries, was acquired by a group of private investors after a difficult period for the company.
Based off Red Mill Road near Newark, Lycra has been operating under receivership proceedings which began in February after its former parent company, Hong Kong-based Ruyi Textile and Fashion International Group Limited, went into default. on its loans related to its own acquisition of Lycra in 2019.
Terms of the private acquisition by the new shareholder were not disclosed.
The new ownership group includes Lindeman Asia and Lindeman Partners Asset Management, a South Korean venture capital fund; Tor Investment Management, a Hong Kong-based private alternative asset manager; and China Everbright Limited, another Hong Kong-based investment company.
Well known for the stretchy, form-fitting material that became ubiquitous with yoga pants, Lycra is an offshoot of DuPont dating back to the 1950s. The Delaware chemistry and materials titan sold its Apparel & Advanced Textiles unit to Koch Industries in 2004 for $4.4 billion, the last time a public valuation of the company was conducted. Ruyi acquired Lycra from Koch subsidiary Invista in 2019.
Lycra continues to market its Lycra, Coolmax and Thermolite brands heavily and holds over 800 patents which have helped it establish long-standing strategic relationships with most major producers, brands and retailers.
With its new ownership and governance in place, Lycra “will continue to focus on accelerating the implementation of its vision, including sustainable solutions that advance circularity, strategic technology partnerships to develop and grow a wider range of innovative materials, and ongoing digital transformation initiatives. »
“I am thrilled to have the full support of our new shareholders and our new Board of Directors as we embark on the next chapter in The Lycra Company’s history,” CEO Julien Born said in a statement announcing the announcement. ‘acquisition. “This new ownership structure provides the necessary support from experienced investment professionals who share our long-term vision.”
The coalition of new shareholders, which has a proven track record of financing and investing in companies in Asia and globally and working with boards of directors on business and operational plans to enhance long-term value creation term, would be “committed to further assisting The Lycra Company to strengthen its financial position and enable its long-term growth.
“We fully support The Lycra Company’s world-class management team and their continued stewardship of The Lycra Company,” an unnamed spokesperson for the private equity firms said in the press release. “The Lycra Company is in a strong financial position and has a solid foundation for long-term growth.”