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TAU Invests in Eco-Friendly Textile Dyeing Tech With 2 Acquisitions

TAU Investment Management LLC announced agreements for two simultaneous investments in sustainable, waterless textile dyeing.

A special purpose vehicle formed and managed by TAU will acquire significant interests in DyeCoo Textile Systems B.V. and CleanDye Holding B.V. as part of TAU’s strategy to invest in sustainable, transparent and responsible supply chains of the future. TAU joins other investors such as Ingka Investments, the investment arm of Ingka Group, together with Nike and Otto Group.

TAU said dyeing and treatment of textiles is responsible for an estimated 20 percent of industrial water pollution globally. DyeCoo’s patented DyeOx technology allows for waterless and chemical-free textile dyeing, making it a valued partner to some of the world’s largest retailers and leading global manufacturers also committed to DyeCoo’s sustainable technology.

Through its wholly owned subsidiaries, CleanDye operates a textile dyeing facility purpose built in Vietnam exclusively to use DyeCoo’s waterless and chemical-free DyeOx technology. CleanDye’s dedicated use of DyeOx technology allows it to offer customers fabrics dyed with no water, no process chemicals and no wastewater discharge produced in a hazard-free environment, while realizing 50 percent energy savings and unmatched  geographical freedom from water sources, according to TAU.

“This is a unique opportunity to support two organizations bringing a new facet of sustainability to the garment industry,” TAU CEO Oliver Niedermaier said. “We look forward to further application opportunities for the technology in other sectors, such as automotive and beverages.”

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Ken Katz, TAU head of Asia investment, said in addition to the geographic flexibility and cost savings the technology provides, the DyeOx technology is faster and results in better color density than traditional water dyeing methods.

“This technology saves money, reduces environmental impacts, allows for more geographical flexibility and results in better quality products,” Katz said.

Christian Ehrenborg, senior investment manager at Ingka Investments, said having Tau join as an investor brings industry expertise, and a broad network and deep understanding of sustainable supply chains.

As part of the agreement, TAU will join the boards of directors of DyeCoo and CleanDye, and will play an active role in contributing its responsible supply chain technology expertise and industry network. Terms of the investments were not disclosed.

TAU is a New York- and Hong Kong-based investment and advisory firm for the global apparel supply chain. In investment management, TAU originates, executes and manages proprietary private equity investments. The firm is a fund manager, participates in single deal vehicles and co-investments, and offers separately managed accounts.

With IKEA retail operations in 32 markets, Ingka Group is the largest IKEA retailer and represents about 90 percent of IKEA retail sales. It is a strategic partner to develop and innovate the IKEA business and help define common strategies. Ingka Group owns and operates IKEA sales channels under franchise agreements with Inter IKEA Systems B.V.