Carlyle Prepares Sale of Jeanologia Stake

Carlyle is reportedly preparing to divest its 40% stake in Spanish sustainable technology provider Jeanologia, a move that could unlock significant value for the private equity giant. The firm has enlisted Banco Santander to manage the sale process, signaling a formal step towards exiting its investment in the denim finishing equipment manufacturer.

Jeanologia has carved out a niche by developing innovative, eco-friendly machinery that replaces traditional, water-intensive methods for distressing and decorating denim. Its laser, ozone, and nanobubble technologies significantly reduce the environmental footprint of garment production, appealing to a growing cohort of environmentally conscious brands. Key clients reportedly include major apparel players such as Levi's, Guess, Ecoalf, and Uniqlo, underscoring Jeanologia's market penetration and the increasing demand for sustainable manufacturing solutions in the global apparel industry.

The potential sale comes seven years after Carlyle acquired its stake in 2017, valuing the company at approximately €150 million at the time. The Silla Vidal family, who founded Jeanologia in 1994, currently holds the remaining 60% and is expected to remain at the helm post-transaction, continuing their leadership in the company's next growth phase. This strategic exit aligns with Carlyle's broader portfolio management strategy, potentially freeing up capital for new investments.

Jeanologia's financial performance indicates a company on a solid growth trajectory. For 2024, the company reported revenues of €45 million and an EBITDA nearing €8 million. Current market sources suggest the company's EBITDA has since climbed to approximately €10 million, reflecting strong operational execution and market demand for its specialized technologies. This financial profile is likely to attract a range of potential buyers, from strategic industry players to other financial sponsors seeking exposure to the sustainable manufacturing sector.

Headquartered in Valencia, Spain, Jeanologia operates multiple production facilities, including sites in Barcelona, Izmir (Turkey), and Italy, focusing on laser machinery, ozone treatments, and eco-efficient washing systems. The company's commitment to innovation and sustainability positions it favorably within the textile industry, a sector increasingly scrutinized for its environmental impact. The global market for sustainable apparel technologies is projected to expand significantly in the coming years, driven by regulatory pressures and consumer preferences.

This potential divestiture by Carlyle occurs amidst broader portfolio adjustments. The firm is also reportedly seeking to sell its stake in Spanish wine producer Codorniu and has previously been involved in the sale of its Spanish business within pharmaceutical services giant Curia. Other notable holdings in Spain include Moeve, Garnica, and Altadia, showcasing Carlyle's continued, albeit evolving, presence in the Iberian market.