Nextil offloads American subsidiary, Elastic Fabrics

Nueva Expresión Textil, S.A. (Nextil) has said that it has proceeded with the sale of its American subsidiary in a transaction that is expected to generate a pre-tax capital gain of approximately 3.2 million euros.

The sale regards the production facilities of Elastic Fabrics of America Inc, located in North Carolina in the US, according to filings with the Comisión Nacional del Mercado de Valores (CNMV).

Through the sale, the Spanish firm said that the capital would reduce the financial debt of the group by 4.5 million euros.

As part of an agreement with the buyer, Nextil noted that it would continue to operate the related facilities until the month of March 2024, after which it will start its production activity in Guatemala.

Here, the company has already invested over 12 million euros into its weaving industrial operations, integrating “new, state-of-the-art machinery” that will allow its development in the region to be “faster, more efficient and with lower costs”.