NEW YORK (August 24, 2022) – TAU Investment Management, LLC, a New York- and Hong Kong-based private equity rm that invests in the global apparel and textile value chains, is completing two simultaneous deals in waterless textile dyeing, Managing Director and Head of Asia Investments Ken Katz told Mergermarket.
A special purpose vehicle (SPV) formed and managed by TAU will acquire a significant interest in Weesp, Netherland-based DyeCoo Textile Systems, B.V., and a controlling interest in Ho Chi Minh City, Vietnam-based CleanDye Holding, B.V., as part of TAU’s strategy to invest in the sustainable and responsible supply chains of the future, the managing director said.
TAU expects to invest between USD 10m and USD 15m into the combined deal and is open to mobilizing additional capital if the companies “get the execution right,” according to the managing director.
It will use the growth capital to enhance the operational and energy efficiency of the companies’ core technologies, as well as scale the waterless dyeing production, Katz said, declining to provide further details about the terms of the investments.
As part of the agreement, TAU will join the boards of directors of both DyeCoo and CleanDye to contribute its expertise in sustainable supply chain technology and industry network, according to Katz.
He said the acquired companies did not mandate financial advisors for the combined deal and declined to provide advisory information on the buy side.
TAU does not rely on deals from typical financial intermediaries, as it can leverage its deep sector expertise to source proprietary deals, he added.
Other investors in the deal include Ingka Investments, the investment arm of Ingka Group, IKEA’s largest retailer, Nike, a multinational athletic apparel company, and Otto Group, a German mail order and e-commerce company, according to the managing director.
Through its wholly-owned subsidiaries, CleanDye operates the world’s first textile dyeing facility purpose-built in Vietnam to use DyeCoo’s waterless and chemical-free DyeOx technology, which allows it to produce fabrics dyed with no water, no process chemicals, and no wastewater discharge produced in a hazardless environment, Katz said, adding that DyeOx’s technology can also realize 50% energy savings and geographical freedom from water sources.
“It’s a technology we’ve been watching over the course of a few years now. We’ve had to exercise some patience to find the right window of opportunity, which is now,” he said.
The dyeing and treatment of textiles are responsible for 20% of industrial water pollution globally. DyeCoo’s patented DyeOx technology allows for waterless and chemical-free textile dyeing, making it an important partner to the world’s largest retailers and leading global manufacturers that are also committed to DyeCoo’s sustainable technology, the managing director said.
Ken Katz has over 18 years of private equity and direct investment experience in control, minority, turnaround, and distress situations, with a focus on the global emerging markets. Prior to joining TAU, Katz served as the Executive Chairman and CEO of Global Beauty International, a private equity-owned retail business with a pan-Asian presence in 14 countries, according to his profile on TAU’s website.
By Yuke Xie in Beijing
Write to Yuke Xie at yuke.xie@iongroup.com
[Editor’s note: Subsequent to publication, the second paragraph has been amended to clarify that the TAU-managed SPV will acquire a significant interest in DyeCoo Textile Systems.]