The Lycra Company is under new ownership after former parent Ruyi Textile and Fashion International Group Limited fell behind on the loan it used to finance the purchase of the fiber maker in 2019.
A group of financial institutions, comprising Lindeman Asia, Lindeman Partners Asset Management, Tor Investment Management and China Everbright Limited, has gained full equity control of the company, the fiber manufacturer announced Tuesday .
The change of equity control followed the conclusion of the receivership process that started in February when new shareholders Lindeman Asia, Lindeman Partners Asset Management, Tor Investment Management and China Everbright Limited initiated an enforcement action against Ruyi, the then-parent of Lycra Company, for loan defaults associated with its purchase of Lycra Company in January 2019.
Tracing its ownership back to Dupont in the 1950s, Lycra Company has grown into a key global player in the textile industry with its brands that include Lycra, Coolmax and Thermolite, strong marketing services and a wide network of partners across the global value chain. In addition, the company’s diverse and broad innovation capabilities and robust intellectual property estate of over 800 patents have helped it build long-standing strategic relationships with most leading producers, brands and retailers.
With its new ownership and governance in place, Lycra Company said it will continue to focus on accelerating the implementation of its vision, including sustainable solutions that advance circularity, strategic technology partnerships to develop and scale up a wider range of innovative materials, and ongoing digital transformation initiatives. The new shareholders are committed to further helping Lycra Company strengthen its financial position and enable its long-term growth.
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“I am thrilled to have the full support of our new shareholders and incoming board of directors as we begin the next chapter in The Lycra Company’s story,” Julien Born, CEO of The Lycra Company, said Tuesday. “This new ownership structure provides the necessary backing from experienced investment professionals who share our long-term vision.”
A spokesperson for the new shareholders said they fully support the Lycra Company’s “world-class management team and their continued stewardship” of the company.
“The Lycra Company is in a strong financial position, has a solid foundation for long-term growth, and we look forward to working with the team to provide continued support for the Lycra Company’s future growth,” the spokesperson said.
The Lycra Company’s legacy stretches back to 1958 with the invention of the original spandex yarn, branded as Lycra. Ruyi gained ownership of Lycra when it completed the purchase of Invista’s Apparel & Advanced Textiles business in 2019.
The Apparel & Advanced Textiles unit was sold in 2004 by Dupont to Koch Industries for $4.4 billion. It was at Dupont that fibers such as polyester, nylon and spandex were discovered and marketed. Invista remains a subsidiary of Koch Industries.