Ruyi Holding Group acquired the clothing and textile business of the Leica parent company

China's wool textile mills are continuing to write stories about the global high-end market.

October 28, Shandong Ruyi Group Holdings announced the signing of an agreement with the United States polymers and fiber supplier Invista (Invista), to acquire the latter's advanced textile and apparel business. The transaction is expected to be completed in mid-2018 and neither party disclosed the purchase price.

Headquartered in the United States, INVISTA is one of the world's largest manufacturers of chemical intermediates, polymers and fibers. It is known for its research and development of nylon, spandex , polyester fiber and specialty materials. Its products are widely used in clothing, carpets, car airbags, etc. A wide variety of daily necessities. With more than 50 branches, offices and factories worldwide, the company operates in the global mainstream market.

You may not have heard of INVISTA, but you must know the famous brand Lycra® (LYCRA®). The Lycra® product replaces the traditional elastic rubber cord and becomes a necessary factor in underwear, stockings, swimwear, gymnastics and other clothing that have special requirements for stretchability. Together with INVISTA's market monopoly in the spandex sector, Leica is almost synonymous with all spandex yarns. In the Chinese market, Lycra also promoted its popularity by sponsoring "My Show" and "Refueling Good Men".

In addition to Leica, the company also has major brands such as COOLMAX®, CORDURA®, STAINMASTER® and ANTRON®.

INVISTA's main businesses involved in the acquisition include: LYCRA® fiber, Lycra HYFIT® fiber, COOLMAX® fiber, THERMOLITE® fiber and thermal insulation material, ELASPAN® fiber, SUPPLEX® fiber and TACTEL® fiber product; Production of TERATHANE® PTMEG (polytetrahydrofuran), BDO (1,4 butanediol), THF (tetrahydrofuran); and all relevant technical, operational, business and functional aspects of INVISTA's global manufacturing, R&D and sales offices Department staff (about 3,000 people worldwide).

Qiu Yafu, Chairman of the Board of Directors of Ruyi Holding Group, said that INVISTA's world-class assets and consumer-recognized brands fit well with the ever-expanding fabric-related product portfolio. Through this acquisition, the company will further strengthen its position in the global market for its apparel and premium fabrics business.

This technical textile company, headquartered in Jining, Shandong, started from the woolen mill, is gradually transforming from a textile manufacturing enterprise to a whole industry. At present, it has 20 wholly-owned and holding subsidiaries, and has acquired a series of high-end apparel brands such as Renown, a well-known Japanese clothing company, SMCP (a parent company of brands such as Sandro, Maje and Claudie Pierlot) and British windbreaker brand Aquascutum. It has become a comprehensive clothing company integrating textile fabrics, garment manufacturing, high-end brands and market networks, with annual sales exceeding US$4.6 billion. Ruyi Holding Group's 2017 third quarterly report showed that the group's performance from January to September was 730 million yuan, a year-on-year increase of 7.31%.

According to financial reports, technological innovation , quality and international routes are the key factors driving the growth of Ruyi Holdings Group. The acquisition of INVISTA's apparel and advanced textiles business will further enhance the technical content and raw material advantages of the Group's industrial chain, reduce production costs, and help the Group's global high-end route.

The sale of INVISTA's Chairman and CEO, Jeff Gentry, said that the apparel business has always been an important strategic component of the company, because it is hoped that the business will be able to serve customers, employees and new buyers. Shareholders create the greatest value.

In the future, INVISTA will retain its nylon, polyester, polyol and technology licensing businesses and related brands, and focus on strengthening the development of the nylon value chain.