HONG KONG • Chinese apparel producer Shandong Ruyi Group is paying more than US$2 billion (S$2.7 billion) to buy the owner of Lycra from Koch Industries, people with knowledge of the matter said.
The purchase is part of Shandong Ruyi's goal to acquire leading global textile brands, according to one of the sources, who asked not to be identified because the information is private.
The Chinese firm announced last month that it will buy the Apparel & Advanced Textiles business of Invista, a subsidiary of Wichita, Kansas-based Koch Industries, for an undisclosed price.
Shandong Ruyi is adding about 3,000 employees through the deal, which brings it apparel-focused brands, including Lycra and Coolmax fibres and Thermolite insulation, as well as manufacturing facilities, research centres and sales offices around the globe.
It continues to pursue acquisitions even as other Chinese companies have slowed deal-making in the United States, with announced purchases falling 78 per cent this year to US$15.7 billion, data compiled by Bloomberg shows.
Invista expects to close the sale by the middle of next year, the company said in an earlier statement. Representatives for Shandong Ruyi and Invista declined to comment.
Shandong Ruyi already controls French fashion retailer SMCP and British trench coat maker Aquascutum. The company is also pursuing an investment in Trinity, the billionaire-backed owner of bespoke suit maker Gieves & Hawkes.