Recover secures $100 million minority investment from Goldman Sachs

TBS report

June 14, 2022, 10:10 p.m.

Last modification: June 14, 2022, 10:15 p.m.

A view of Goldman Sachs’ stall on the floor of the New York Stock Exchange on July 16, 2013. Reuters


A view of Goldman Sachs’ stall on the floor of the New York Stock Exchange on July 16, 2013. Reuters

Spanish textile recycler Recover has secured a new $100 million minority equity investment to accelerate its global expansion.

Sustainable investing activity within Goldman Sachs Asset Management (Goldman Sachs) alongside majority shareholder STORY3 Capital Partners led the funding round.

Recover will also use this investment to increase its production capacity, enabling faster adoption of sustainability initiatives by major brands and retailers.

Recover serves some of the world’s largest and most recognizable retailers, brands and suppliers, including Primark, Inditex, C&A, Revolve and Lands’ End, according to a recent press release.

Recently, Recover announced the official opening of its new factory in Bangladesh to expand its manufacturing capabilities and accelerate its efforts to transform the fashion industry.

Recover’s proprietary recycled cotton fiber reduces the carbon and water intensity of the apparel supply chain, tackling the apparel sector’s contribution to one of the biggest sources of degradation environment in the world.

Recover estimates that the new investment allows it to increase its production to more than 350,000 tonnes of recycled cotton fiber per year by 2026, saving up to 5 trillion liters of water per year, or the equivalent of drinking water consumed by more than 4.5 billion people each. year – and enabling significant reductions in carbon emissions, energy and land use compared to conventional cotton lint, based on industry research.

“We are excited to invest in Recover’s growth to accelerate large-scale production and the continued development of its technologies,” said Letitia Webster, head of sustainability for private equity at Goldman Sachs Asset Management Division.

As part of the transaction, Webster will join Recover’s board of directors.

“Recover is helping to create a sustainable future by solving a colossal environmental problem and we are thrilled to partner with Goldman Sachs to accelerate our growth,” said Alfredo Ferre, fourth generation family steward and CEO of Recover.

Ben Malka, Operating Partner at STORY3 Capital Partners and Executive Chairman of Recover, said, “Recover has perfected the art and science of large-scale production of sustainable recycled cotton fibers over more than 70 years through several generations of the Ferre family in Spain. Today, Recover offers a solution based on proprietary intellectual property that provides recycled cotton fiber at a competitive price and maximum performance for rotor and ring applications.”

Operating in the $50 billion cotton market, Recover is a leading innovator and category-defining company that has grown rapidly. The company has opened new manufacturing centers in Pakistan and Bangladesh, with additional centers in Bangladesh and Vietnam expected to open in the short term.

“For change to happen at scale in the fashion industry, we need partnership and collaboration with innovators like Recover,” said Lynne Walker, Director of Primark Cares, Primark.

“As we increase the use of Recover’s recycled cotton fiber in Primark products, this investment will enable us to deliver on our commitment to make more sustainable fashion affordable to millions of customers,” she added.

Peter Comisar, managing partner of STORY3 Capital Partners and former partner at Goldman Sachs, said: “We are extremely proud that our collaboration with Recover has allowed the business to grow dramatically since our acquisition in 2020. Over the Next few years we will see radical changes transforming major industries with sustainable solutions. Recover is uniquely positioned to be the global leader in sustainable cotton fiber and we are delighted to partner with Goldman Sachs for the next phase in Recover’s evolution.

What opportunities in Bangladesh

Spanish recycled cotton fiber producer Recover touted the initiative as Bangladesh’s second-largest garment exporter produces around 4 lakh tonnes of garment cutting waste annually, locally known as “jhut”, of which only 5% can be recycled. to four factories, according to industry insiders.

This clothing waste has gradually gained a foothold in the world of clothing due to its usefulness in the manufacture of high-end items. Most global fashion brands are now turning to recycled yarns in the production of clothing products. These items made from recycled yarn represent only 5% of the global market.

Global fashion giants H&M and Inditex have set targets to use 100% recycled or sustainable fibers by 2025-30 in the production of ready-made garments.

According to the company’s website, this is the second of the company’s three recycling centers, where it plans to set up six more recycling units.

The Bangladesh factory is fully equipped with Recover’s proprietary machinery, as well as the RColorBlend facility, Recover’s innovative technology that provides fiber blends with color, with less environmental impact, a press release says.

Located in Dhaka, the new manufacturing center is an integral part of Recover’s growth and scalability strategy with its recent partnership with STORY3 Capital, a leading alternative investment manager. This new facility helps Recover support the growing global demand for sustainable fibers and circularity in the textile and fashion industry.

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