The Spanish group, manufacturer of the nylon Meryl thread, is finishing an agreement to install seamless technology in its factories and it's looking for an industrial partner to boost its business.
Nylstar searches investors to boost its business. The Spanish industrial group, owner or the nylon Meryl thread, is considering selling a minority stake to get resources to develop its business. Nylstar, controlled by the Praedium fund and led by Alfons Cirera, is a supplier for brands like Inditex, Adidas or Lululemon.
Nyslstar has been having conversations with some potential investors, sources of the company told Mds. The company plans an alliance with a financial partner (excluding venture capital) to sell a minority stake though a capital increase.
On the other hand, the company is also preparing a joint venture with an industrial partner to install seamless technology in its factories.
Seamless technology was used for stockings and intimates, but it has expanded into other segments like outerwear and sportswear. Seamless machines operate though tubes and the finishing require minimum intervention, which makes easier sourcing by proximity because it doesn’t need a strong labor force.
Nylstar negotiates selling a minority stake in its capital to get financing to develop its business
Nylstar is in negotiations with two industrial group specialized in this technology, to install it into its Blanes factory near Barcelona. Plans of the company are to create a joint venture participated by 50% so the industrial group will invest in the machinery and Nylstar will take care of commercialization. The new partner will be the supplier of seamless for Merely but could also open to other clients.
With an invested of more than 20 million euros during the past years, Nylstar plans to achieve a positive ebitda in 2019. The company has set the goal of reaching a 25% increase in sales compared t the previous year.
The group plans to increase its sales 25% this year, up to ten million euros
The factory of the company is in the Spanish location of Blanes, where it has 60,000 square meters. The group currently exports 90% of its production with clients in more than 60 countries around the world. Recycled nylon produced in its factory has recently received the Join Life tag of Inditex.
Founded in 1923, Nylstar became in the fifties in the first nylon 6.6 producer in Europe. However, changes in the sourcing of the big groups affected the company that entered a crisis. The group reactivated its production at the end of 2016 and since then the company has added new production lines.