LONDON: HeiQ Plc (LSE: HEIQ), a Swiss IP innovator and established global brand in materials and textile innovation which operates in high-growth markets, has signed a development partnership agreement with HUGO BOSS (MDAX: BOSS) to support the commercialization of HeiQ’s latest innovation, HeiQ AeoniQ, a high performance, climate positive, cellulose yarn aimed at decarbonizing the fashion industry.
HUGO BOSS, one of the leading companies in the global premium apparel market, has invested US$5 million in HeiQ’s 100% owned subsidiary at an implied valuation of US$200 million. HeiQ AeoniQ LLC will use the proceeds towards funding the pilot commercialization plant, scheduled for Q2 2022.
As well as the initial investment, HUGO BOSS has agreed to make additional deferred payments of up to US$4 million, subject to the completion of specific project milestones. The agreement also contains a call option, enabling HUGO BOSS to acquire an additional holding in HeiQ AeoniQ LLC at the same implied valuation as the initial equity investment.
Today’s transaction is the first sustainability-linked equity investment made by HUGO BOSS as part of its ‘CLAIM 5’ growth strategy, which includes a firm commitment to further strengthen its sustainability efforts to deliver both measurable impact, as well as emotional engagement with the consumer.
In addition, HeiQ has signed an agreement with The LYCRA Company, whereby it will become the exclusive distributor for HeiQ AeoniQ yarns.
The LYCRA Company will pay an undisclosed but substantial technology fee and deploy industry expertise and sales resources to accelerate commericalization, subject to the completion of specific project milestones.
As a global leader in stretch and performance fibers and being renowned for its innovation prowess and consumer ingredient branding, The LYCRA Company has committed to develop the technology for broad application in textiles.
The HeiQ Directors believe that The LYCRA Company is the ideal partner to bring the new HeiQ AeoniQ yarn to market.