Recover receives $100 million investment to increase cotton production capacity
Recover, a materials science company and producer of sustainable recycled cotton fibre and cotton fibre blends, has closed a new $100 million minority equity capital investment led by the Sustainable Investing business within Goldman Sachs Asset Management (Goldman Sachs). Goldman Sachs is investing alongside majority shareholder STORY3 Capital Partners.
Recover will use the investment to accelerate its global expansion and production capacity, allowing more rapid adoption of sustainability initiatives by brands and retailers. Recover serves some of the largest and most recognizable retailers, brands, and vendors, including Primark, Inditex, C&A, Revolve, and Lands' End.
Recover's proprietary recycled cotton fibre reduces the carbon and water intensity of the apparel supply chain, addressing the apparel sector's contribution to one of the world's largest sources of environmental degradation. Recover estimates that the new investment places Recover on a path to increase its production to over 350,000 metric tons of recycled cotton fibre per year by 2026, saving up to 5 trillion litres of water annually – equivalent to the drinking water consumed by over 4.5 billion people each year – and allowing for significant reductions of carbon emissions, energy and land use relative to conventional cotton fibre, based on industry research.
"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.
A growing number of Recover's customers are co-branding products with Recover to showcase that they have been produced with the company's recycled cotton fibre. Operating in the $50 billion cotton market, Recover has experienced rapid growth. The company has opened new manufacturing hubs in Pakistan and Bangladesh, with additional hubs in Bangladesh and Vietnam due to open in the near term.
"For change to happen at scale across the fashion industry, we need partnership and collaboration with innovators like Recover," said Lynne Walker, Director of Primark Cares, Primark. "As we increase the use of Recover's recycled cotton fibre in Primark products, this investment will enable us to meet our pledge to make more sustainable fashion affordable to millions of customers."