Spinnova proposes deal as Portuguese yarn partner faces restructuring
Specialist developer of textile fibre from wood pulp and other waste streams, Spinnova, has moved to acquire Portuguese yarn manufacturer Tearfil.
The two companies have been working together since 2023, when Tearfil began work to put Spinnova fibres into commercial-scale yarns.
Tearfil faces financial difficulty and is now subject to a court-supervised restructuring process to enable it to negotiate a recovery plan with its creditors while continuing its business operations.
Spinnova said acquiring Tearfil would strengthen its position in the textile value chain. It would allow it to secure “dedicated yarn development and spinning capabilities” for its fibre.
Furthermore, it said the proposed acquisition would help it shorten development cycles and “accelerate commercialisation” with brand and supply chain partners.
Both companies signed a non-binding letter of intent on September 17. This sets out an initial purchase valuation of €500,000, which Spinnova will pay in cash and shares, for all of Tearfil’s equity.
In addition, Spinnova has said it will explore the possibility of supplying a bridging loan of €1.5 million to Tearfil to help it come through the restructuring process successfully.
The intention is to complete the acquisition in the first quarter of 2027.
