Lectra has acquired 51% of the capital and voting rights of TextileGenesis for an amount of €15.2 million.
- The acquisition of the remaining share capital and voting rights is expected to take place in two stages, in 2026 and 2028, for an amount that will be calculated based on a multiple of the 2025 and 2027 recurring revenues.
- The acquisition gets into effect from January 2023.
- TextileGenesis was one of the winners of the 2020 Global Change Awards for tracking sustainable fibres through transparent and reliable blockchain technology.
The TextileGenesis Story: Founded in 2018, TextileGenesis provides a Software as a Service (SaaS) platform that enables fashion brands and sustainable textile manufacturers to ensure a reliable, secure and fully digital mapping of their textiles, from the fibre to the consumer, and thereby guarantee their authenticity and origins.
- TextileGenesis has ongoing global traceability partnerships with Textile Exchange, US Cotton Trust Protocol and Canopy.
- It also has partnerships with leading fibre producers such as Lenzing, Schneider and Arvind
- The TextileGenesis solution ensures the traceability of TextileGenesis’ customers' entire sustainable textile supply chain in order to meet the demands for transparency, driven by changes in legislation in a growing number of countries and by growing consumer awareness, thereby encouraging sustainable development.
- Its innovative traceability mechanism, which addresses both ends of the textile value chain, as well as its network of partners for material certification, and its technology platform guarantee the exchange and tracking of reliable and secure data throughout a material's lifecycle.
- Several prestigious fashion brands as well as leading sustainable fibre producers already avail of TextileGenesis' solution, which enables the connection of multiple actors of the sustainable fashion ecosystem on this platform.
The Buyer: Lectra is a major player in the fashion, automotive and furniture markets.
- Founded in 1973, Lectra reported revenues of €388 million in 2021 and is listed on Euronext Paris (LSS), and has set a revenue target of between €514 million and €534 million for 2022.
- The group offers industrial intelligence solutions - software, equipment, data and services - that facilitate the digital transformation of the companies it serves.
What They Said:
Fashion is one of the most fragmented industries due to its long and complex value chain, which makes it opaque to brands, suppliers, subcontractors, and consumers. Today, only 19% of fashion industry actors have visibility of their value chain, and this visibility is often partial. Many brands, especially those that have set ambitious sustainability goals, face a real challenge in terms of supply chain transparency. If they cannot track the life cycle of certified materials, they will not be able to justify the sustainability of their products.
— Amit Gautam
Founder
TextileGenesis
Having the highest ethical standards, guaranteeing the well-being of our employees, and preserving the environment are embedded in Lectra’s DNA and guide our daily decisions. Through our technology, acquisitions, and partnerships, we aim to empower our customers to work in a more socially and environmentally responsible way,” says Daniel Harari, Chairman and Chief Executive Officer of Lectra. “We look forward to joining forces with TextileGenesis' talented teams to accelerate the development of their sustainable material traceability solution and deepen our knowledge of the textile value chain in the fashion industry,” he concludes.
— Daniel Harari
Chairman and Chief Executive Officer
Lectra
