Why Can Lycra, Shandong's $2 Billion 600 Million Acquisition, Sprint The Science And Technology Board?

It has close ties with the more than 200 year old global chemical giant DuPont Co (DuPont) and the world's largest non-listed company Koch Industries. In 2003, DuPont Co set up DuPont Textiles and Interiors, a subsidiary of DuPont fabric and interior materials. Only a year later, DuPont sold the subsidiary to Coriolis industry. Then Coriolis industry merged its subsidiary Kosa into infield today. And Shandong's Lycra is one of the many brands of fiber under the banner. In January of this year, Shandong completed its 2 billion 600 million dollar acquisition of Lycra, then Lycra began to sprint the science and technology board.

In August 28th, Shandong Ruyi group held the signing ceremony of the thirty billion asset listing. Ruyi Group signed the contract on the launch of Lycra, Singapore's industrial assets and A shares, and China XinDa, Huatai United Securities, XinDa securities, Singapore DBS bank, Zhonglian fund, Sino German securities and other units.

The signing of the three major listed projects aimed at creating a new technology and material plate represented by Leica, with SMCP, Li bang as the representative of the fashion brand plate, with Shandong, Ningxia, Xinjiang, Pakistan and other "all around the way" assets represented by the intelligent manufacturing sector.

Among them, Lycra is Ruyi group completed by the end of January this year, the acquisition cost $2 billion 600 million. The deal spanned 2017-2019 or three years.

The origin of Lycra

In October 28, 2017, Invista, the polymer and fiber supplier of the United States, announced the signing of the final agreement with the China Shandong Ruyi investment holding group to sell apparel and advanced textiles business, one of the four major business segments of the company.

According to the announcement at that time, the business of the business involved in the transaction included the fiber and brand product portfolio of the iweida apparel business, including the LYCRA (Lycra) fiber series, the global relevant production plants, R & D centers and sales offices, all the relevant technical, operational, business and functional personnel (around 3000 people around the world).

In July 2018, the deal was approved by the CFIUS.

Six months later, Shandong Ruyi group completed the acquisition of Lycra at the end of January 2019.

Ying Wei Da is a hard core material company.

As one of the largest manufacturers of chemical intermediates, polymers and fibers in the world, Ying Wei Da is renowned for R & D of nylon, spandex, polyester fiber and specialty materials. Its products are widely used in various kinds of daily necessities such as garments, carpets, automobile airbags, etc. Its headquarters is located in Wichita, Kansas, USA. It has more than 50 branches, offices and factories worldwide.

It has close ties with the more than 200 year old global chemical giant DuPont Co (DuPont) and the world's largest non-listed company Koch Industries. In 2003, DuPont Co set up DuPont Textiles and Interiors, a subsidiary of DuPont fabric and interior materials. Only a year later, DuPont sold the subsidiary to Coriolis industry. Then Coriolis industry merged its subsidiary Kosa into infield today.

And Shandong's Lycra is one of the many brands of fiber under the banner.

Transfer to science creation board

After the completion of the acquisition, Shandong Ruyi brand and related businesses into the new company Lycra group, so as to become the controlling shareholder of the Lycra group.

Since then, it has been reported that Shandong Ruyi intends to enter the domestic A share market through IPO or asset restructuring.

However, the market is changing rapidly, and the emergence of the science and technology board provides a new destination for Lycra.

In March 22nd, the Shanghai Stock Exchange announced the first list of 9 companies accepted by the company. From the opening ceremony of the first China International Import fair in November 5, 2018, the state leaders declared that "the establishment of Shanghai science and technology innovation board and the pilot registration system" will be published on the stock exchange of the PRC, and the announcement of the first batch of accepted lists is only 133 days past. One of the procedures and procedures for the establishment of the science and technology board is not easy.

Then in April, market sources said that Ruyi was ready to list Lycra on the GEM board. In May 23rd, Ruyi held the launching meeting of Ruyi Lai Ke Ke board in Jining headquarters. In June, Ruyi confirmed that Huatai Securities and XinDa securities were listed as sponsors and underwriters of Leica group's Chuang Chuang board, and invited Beijing Richful Cci Capital Ltd to be the general consultant of the project. At this point, the Lycra group landed on the capital market and entered a substantive stage of operation.

Why can Lycra sprint the Science Board?

In view of this, Laijia group sponsor's representative of Huatai joint Securities believes that "Lycra has an absolute competitive advantage in the spandex industry. It belongs to the" high performance composite material enterprise "recommended by the" guidelines for the listing of listed companies of science and technology ". Its mature business mode, self owned intellectual property and core technology, highly effective R & D system and continuous innovation ability, highly recognized R & D achievements and strong financial indicators will be a bright pearl for the future.

"Customized" scientific creation board?

According to the guidelines recommended by the Shanghai stock exchange for the listing of enterprises, the sponsors should fully evaluate the technological innovation capability of enterprises, focusing on the independent intellectual property rights, R & D system, patent achievements, market competitive advantages, technological transformation results, and serving the national strategy.

These requirements are indeed "tailored" for Lycra.

As the Pearl of the crown in the field of global fiber and new materials, the Lycra group produces innovative fibers and provides advanced technology solutions for the costumes and materials industry. It has a rich brand fiber family, including the world-renowned high-end spandex LYCRA, special polyester cool and refreshing COOLMAX series, thermal THERMOLITE series, main elastic T400, and special nylon SUPPLEX, TACTEL and other fibers.

Leica regards R & D innovation capability as its core competitiveness, mainly in the following aspects: first, the excellent R & D system, which has 45 world top researchers and 178 R & D engineers in the 5 independent R & D laboratories around the world, and has maintained several tens of thousands of dollars in R & D investment every year; two is the number of leading patents, Leica group has more than 2700 well-known trademarks and 1400 patents, the number of patents accounts for 1/3 of the total number of patents in the industry, three is a notable R & D result, Lycra has an annual turnover of more than 7 billion 500 million yuan, the annual sales of Lycra fiber brand clothing exceeds 1 billion, and more than 60% sales come from new products developed in recent years, and the output of LYCRA series high-end fiber is maintained at a rate of nearly 60% per year.

In order to introduce Leka's advanced technology into China, Shandong Ruyi has begun to act.

Ruyi plans to invest in the construction of new fiber material industrial park in Jining high tech Zone, and will lay the latest research achievements of Lycra, such as new generation of thermal fiber, cool fiber, T400 and other new fibers, to create a new profit growth point, and boost the transformation of Shandong's new and old energy and industrial structure adjustment and upgrading. At the same time, Leica technology is revamping the existing capacity plan, transforming the existing 60 thousand tons of ordinary spandex into the middle end of Yinchuan, and transforming the existing 7000 tons of ordinary spandex in Jining into the high-end Lycra fiber production capacity to make up for the market demand for high-end spandex.

At the same time, the state also needs to upgrade the textile industry.

All along, China's textile industry has obvious international competition and development advantages, and occupies a leading position in the global textile industry. It is not only the country with the largest scale of production, but also the most complete industrial chain and the most complete category. However, at present, China's textile and apparel industry has a serious oversupply of low-end goods, and the high-end market is occupied by internationally famous brands.

In April 8th of this year, the national development and Reform Commission promulgated the guidance catalogue for industrial restructuring (2019 edition, draft), and the draft was composed of three categories: encouragement, restriction and elimination. In the textile industry, the draft encourages a total of 13 entries to encourage the content to increase the development, production and application of high-performance fibers and products, the establishment of intelligent spinning mills, the complete set of continuous spinning equipment, digitization, intelligent printing and dyeing technology and equipment, dyeing and finishing cleaning production technology, etc.

The introduction of the Lycra brand will bring the top technology and continuous innovation momentum to the domestic textile industry.