Navis Capital Partners has agreed to sell its stake in Hong Kong-based apparel material provider Texon to UK-based thread manufacturer Coats Group for $237 million, per a statement by Navis’ financial advisor BDA Partners.
Navis invested in Texon in 2016 for an undisclosed sum. DealStreetAsia had reported that the value could size between $75 million and $125 million.
The sale intention was first reported in 2020, and earlier this year, Navis was said to revive the exit as COVID-19 impacts subsided.
In April, Korean online newspaper Kedglobal reported that Mirae Asset Management and other Korean private equity firms were weighing bids for Texon.
Established in 1947, Texon makes a broad product portfolio including innovative structural components, revolutionary woven materials, creative cellulose solutions and high-performance fabrics, for brands such as Clarks, New Balance, Decathlon, Nike, VF Corp, and Wolverine.
The company has operations in 90 countries, with six manufacturing locations producing over 30 million square metres of material annually, according its website.
The sale of Texon is the 12th exit in which BDA Partners has advised Navis, the American advisory firm said.
Previous transactions include a recent divestment from Singapore-based battery lifecycle services firm TES-Envirocorp to SK ecoplant, Vietnam-based OPV Pharmaceuticals to RV Healthcare, Hong Kong-based chemical solutions provider Amazon Papyrus Chemicals to The Longreach Group, Singapore-based printed circuits board solution provider MFS Technology to DCP Capital, and Alliance Cosmetics to Mandom, among others.
“The acquisition of Texon will strengthen our existing presence in the highly attractive athleisure footwear market. The business is complementary to Coats and provides attractive future commercial opportunities,” said Rajiv Sharma, Coats Group’s CEO.
Navis manages approximately $5 billion in private equity capital. Since its inception, the Malaysia-headquartered firm has completed over 90 control transactions, of which over 60 have been exited.
Navis’ other portfolio companies in the textile and apparel industry include Vietnam-based denim manufacturer Saitex and regional leather manufacturer ISA TanTec.
In August 2021, the firm announced the closing of Navis Asia Green Loop Fund, a continuation fund with $450 million of capital. The vehicle holds five of Navis Asia Fund VI’s portfolio companies, which all develop the climate and sustainability theme.
A continuation fund is set up to hold on to certain assets of another investment vehicle that reaches the end of its lifespan. Navis also closed its eighth flagship fund at $900 million last year.