Hugo Boss AG and HeiQ PLC said on Monday that they had entered a partnership to support the commercialisation of HeiQ’s sustainable cellulose yarn product.
The Zurich-based textile innovation company explained that Hugo Boss has invested $5 million into its wholly-owned subsidiary, HeiQ AeoniQ LLC, which will be used to fund a pilot commercialisation plant.
As well as the initial investment, the German luxury fashion company has agreed to make additional deferred payments of up to $4 million dependent on specific project milestones. The agreement also contains a call option enabling Hugo Boss to acquire an additional holding in HeiQ AeoniQ.
Hugo Boss said the partnership was part of its ‘claim 5’ growth strategy in which the company aims to increase the proportion of sustainable materials used in its collections moving forward.
In addition to its partnership with Hugo Boss, HeiQ announced that it had also signed an agreement with The Lycra Co for the company to become the exclusive distributor to HeiQ AeoniQ yarns. The financial details of the agreement were not disclosed.
HeiQ Co-founder & CEO Carlo Centonze said: ‘The financial commitments by such prestigious companies as Hugo Boss and The Lycra Co are strong endorsements of the enormous potential we see in HeiQ AeoniQ, which is one of seven HeiQ technology platforms. These agreements also demonstrate our ability to commercialize our HeiQ AeoniQ IP, which, whilst still at an early stage, has secured third party investment at an implied $200 million valuation.’
Shares in HeiQ were up 6.5% at 90.00 pence on Monday morning in London while Hugo Boss was down 3.1% at €55.24 in Frankfurt.
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