The Austrian fiber manufacturer Lenzing AG wants to acquire a majority stake in the Swedish company TreeToTextile AB.
In a statement published on Monday, the group described the planned takeover as “another strategic milestone”. The company, founded in 2014, stands for “the next major technological advance in cellulosic fiber production”. Lenzing had already acquired a minority stake in TreeToTextile last year and now wants to significantly increase it.
The two companies did not publish financial details of the transaction, which will be “implemented through the issuance of new shares.” Well-known investors such as the H&M Group, Inter Ikea Group and Stora Enso would “continue to accompany TreeToTextile’s journey as minority shareholders and bring in valuable market and consumer perspectives,” emphasized Georg Kasperkovitz, Lenzing’s Chief Operating Officer (COO), in a statement. LSCS Invest will also remain involved in the company.
Lenzing wants to strengthen TreeToTextile’s production capacities
The acquisition of the majority shareholding by Lenzing enables “an accelerated scaling of the new technology” from TreeToTextile, the group explained. The new majority owner is planning “a significant increase in production output in the existing demonstration plant in Nymölla, Sweden, as well as the preparation of the first large-scale industrial plant.” In addition, “operational synergies from closer cooperation” are expected.
Roxana Barbieru, CEO of TreeToTextile, welcomed the transaction. “Innovation at industrial scale requires time, expertise and strong partnerships,” she explained. “The increase in the Lenzing Group’s stake is a clear confirmation of our technology and our goal to become a major player in the global fiber market.”
