LONDON – Investment bank Goldman Sachs has led a US$100m investment round in recycled cotton fibre company Recover. The minority stake values the Spanish company at around US$1.1bn. The money will be used to expand production to more than 350,000 metric tons of fibre per year by 2026. Goldman Sachs is investing alongside majority shareholder STORY3 Capital Partners.
Recover serves some of the largest retailers, brands and vendors in the world, including, among others, Primark, Inditex, C&A, Revolve and Lands’ End.
“Goldman Sachs is committed to partnering with innovative businesses that help drive sustainability,” said Letitia Webster, head of sustainability for private investing at Goldman Sachs Asset Management Division. “Recover is a leading disruptor in the apparel and textiles space with much-needed sustainable solutions grounded in materials science. We’re excited to invest in Recover’s growth to accelerate scaled production and the continued development of its technologies.” As part of the transaction, Webster will join the board of directors of Recover.
“Recover is helping create a sustainable future by solving a colossal environmental issue and we are overjoyed 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, stated: “Recover has perfected the art and science of scaled production of sustainable recycled cotton fibre over more than 70 years across multiple generations of the Ferre family in Spain. Today, Recover offers a solution grounded in proprietary IP that provides cost-competitive, maximum-performance recycled cotton fibre for both rotor and ring-spinning applications.”
Peter Comisar, managing partner of Story3 Capital Partners and former partner of Goldman Sachs, noted that Recover has dramatically scaled up since the investment firm acquired a substantial stake in the business in 2020.
“Over the coming years, we will see radical transformation of large industries with sustainable solutions,” he added.
Recover will use the investment to accelerate its global expansion and production capacity, allowing more rapid adoption of recycled fibre initiatives by leading brands and retailers.