Shandong Ruyi Goes To The World To Buy "Lycra" Approved

The acquisition of "Lycra" by Ruyi group's parent company Shandong Ruyi Technology Group (Ruyi Technology Group) has been approved by CFIUS, which is the only high-tech company mergers and acquisitions approved in the recent Sino US trade war.

Last October, Ruyi Technology Group signed a final agreement with the American polymer and fiber supplier, NWDA, to acquire the latter's clothing and senior textile business, including its famous LYCRA Lycra fabric business.

Lycra is the most famous, the most technically competent and the largest market share of spandex fiber. It is the creator of artificial fibers and the creator of special fibers.

The total paction volume is about 2 billion 400 million US dollars. Through this acquisition, Ruyi Technology Group will have an advantageous position in the high-end spandex field.

The deal will bring about 3000 employees to the Ruyi group, as well as brands such as Lycra, Coolmax and Thermolite, as well as production equipment, research centers and sales offices all over the world.

Just as Ruyi Group continues to buy around, other Chinese enterprises have slowed down the pace of acquisition in the United States. The total figures show that the size of the purchase announced this year has dropped by 78% to $15 billion 700 million.

Invista is one of the world's largest manufacturers of chemical intermediates, polymers and fibers, with its headquarters in Wichita, Kansas, United States, with more than 50 branches, offices and factories around the world.

It is famous for R & D of nylon, spandex, polyester fiber and special materials. Its products are widely used in various kinds of daily necessities such as garments, carpets, automobile airbags and so on.

The DuPont Co is originally a subsidiary of DuPont Co in 2003. It was originally named DuPont Textilesand Interiors.

In 2004, DuPont sold it to Koch Industries, which merged its subsidiary Kosa into today's infield.

As a wholly-owned subsidiary of Coriolis industry group, it has 10 thousand employees in more than 20 countries.

Its main brands include LYCRA, COOLMAX, CORDURA, STAINMASTER and ANTRON.

Under the circumstances that President Trump repeatedly voicing the merger of high-tech companies, the acquisition was approved or benefited from the background of shareholders of both sides.

It is a wholly owned subsidiary of the Coriolis industry group, the largest unlisted Private Held Company in the United States and the main sponsor of the Republican Party.

Ruyi Technology Group is a dark horse in the domestic textile industry. In recent years, many overseas mergers and acquisitions have gained increasing international influence.

In January 2018, Bloomberg published a report entitled "Beware of the upcoming LVMH group of China." it is pointed out that, for the rapid growth of luxury group LVMH group through mergers and acquisitions, in 2018, apart from rivals, the Asian rival, Shandong Ruyi, should also be alert.

Shandong Ruyi headquarters is located in Jining City, Shandong province. It was formerly a key item at the national level. It was called Ji Ningmao textile mill.

Qiu Yafu, chairman of Ruyi Shandong, has been working in Jining wool textile factory since he was 17 years old.

In 1997, Shandong was willing to carry out enterprise restructuring. Qiu Yafu led the 3200 employees of the factory to "lay off and reemployment" and set up the Shandong Ruyi group.

Shandong Ruyi has been carrying out overseas activities in recent years, such as the holding company of Sandro, Maje and Claudie Pierlot, SMCP SAS of France light luxury group, and the only high-end menswear group in China.

The most widely known number is probably the controlling takeover of Swiss luxury goods company Bally in February this year.

At that time, when interested parties found us and hoped that we would take part in the acquisition of Bally, Bally had four bidders, including Fosun, seven wolves, Herme group and Japan Trade Inc Itochu Commercial Co., Ltd., and Goldman suggested that every bidder make a deal with the Bally management layer in one day, but did not expect the best wish to come, leaving Bally with the deepest impression.

Qiu Yafu wasn't interested in Bally at first.

According to Qiu Yafu's recall, the most fully prepared and professional group should be the Fosun Group, but the most talked about Fuxing and seven wolves are business and return on investment, while Shandong's first interest is the most vulgar feeling.

A month later, Bally's management took the initiative to meet with Qiu Yafu in Hongkong, finalizing the final acquisition, and Shandong Ruyi ranked only fourth in the previous auction.

In addition, in June 2010, Ruyi invested about $44 million in Shandong, and acquired 41.53% of Renown, a famous Japanese clothing company, to become the largest shareholder.

Japanese garment giant RENOWN (Rena) is a listed company on the main board of Tokyo. It has a history of over 100 years. It operates 23 garment brands, and has more than 2500 shops in major department stores and shopping centers in isdan and Gao Dao houses, which are called national brands.

As a matter of fact,

The upstream textile factories, the vast majority of the profits in the whole industry chain are all wrapped up in the brand income, even if it is the OEM mode, the foundries can only occupy 20% of the profits. Therefore, the pformation of Shandong's Ruyi is inevitable. The acquisition of famous brands at home and abroad enables us to see the determination of Shandong's pformation and upgrading to win the industry.

In Qiu Yafu's words, he hopes to get more "fashion discourse power".

Shandong Ruyi currently owns two major business segments, "textile and clothing".

According to its official website, "the company has become a large textile and apparel group which integrates the design, production and sales of worsted fabrics and garments, and has the largest cotton spinning and wool spinning in the world.

Two complete textile and garment industry chains.

However, since there are many problems in brand operation, management and strategy, it is a long and arduous process to rebuild the brand after purchase.