Shandong Wishful Takeover Of The United States In The Short Term To Slow Down The Next Acquisition Speed.

In January 31, 2019, Shandong Ruyi Holding Group officially announced the acquisition of the apparel and fabric business of the American polymer and fiber supplier, including the world-renowned Lycra LYCRA brand, and the establishment of the new The LYCRA Company.

This spanaction includes not only the fiber and brand combination of the apparel and premium fabric business of the company, but also the production of LYCRA, LYCRA HyFit, COOLMAX, and so on, including related production assets, R & D centers, global sales offices, and all the relevant technology brands, product patents, business, operations and administrative personnel all over the world.

After the completion of the spanaction, the Lycra group will operate the business in an independent subsidiary of Ruyi group, Shandong, and maintain its unique positioning, vision, development strategy and organizational structure, and continue to provide advanced technology solutions for clothing and healthcare industries.

This has become another important layout of Shandong's acquisition of foreign brands since 2010, which will further consolidate the leading position of Shandong Ruyi in the global apparel and health care products market.

At the same time, Shandong Ruyi and the former shareholder of iwda will continue to maintain close cooperation with the Coriolis industrial group, which will help and ensure the smooth spanition and handover of the post spanaction business. More importantly, it will set up a new paradigm for Sino US economic cooperation between enterprises in the new situation.

In this regard, Shandong Ruyi Holding Group chairman of the board of directors, Qiu yah Fu said that Shandong has always maintained a clear path of development, and as a leading international asset and technology and brand recognized by consumers, will have a significant synergy with Shandong's fabric and apparel business.

Sun Ruizhe, President of the China Textile Industry Federation, said that Lycra is a leading brand in the world spandex industry and has strong R & D and innovation capability to grasp the bargaining power of the industry. The success of Ruyi group's acquisition will greatly enhance the added value and competitiveness of China's new chemical fiber materials and related products, and is an important milestone for China to spanform from a big textile country to a textile power.

However, according to foreign media reports, although Shandong Ruyi group announced in mid November 2017, it will buy 54% of the capital stock of the garment manufacturer Bagir after the price of US $16 million 500 thousand, and let at least one member of the board of directors join the Bagir board.

But as the Chinese government needs more time to review the deal, the purchase plan, which was scheduled to be completed by the end of 2018, will have to be postponed until May 2019, when the group will make up the remaining $13 million 200 thousand in cash.

In addition, in recent years, China's Shandong Ruyi group, which sold more than 4 billion dollars to acquire fashionable brands both at home and abroad in recent years, announced that it would slow down the next acquisition speed in the short and medium term, and focus on integrating existing brands, while paying attention to more profitable, high growth potential brands.