Global denim giant becomes a strategic partner in Israeli company Sonovia
Shareholders approved a deal where Vicunha will invest 2.4 million shekels for a 20% stake in Sonovia at a 12 million shekel valuation, funding the commercialization of its sound-wave dyeing technology.
International textile corporation Vicunha Têxtil, one of the world's largest denim fabric manufacturers, has entered into a strategic partnership with the Israeli technology company Sonovia, which is traded on the Tel Aviv Stock Exchange. The agreement was approved today at the shareholders' meeting.
As part of the deal, Vicunha will invest 2.4 million shekels in cash, based on a post-money company valuation of 12 million shekels. In return, Vicunha will receive 20% of Sonovia's shares via a private placement. The company stated that the allocation reflects a premium of approximately 25% over Sonovia's stock price on August 10.
The investment is intended to accelerate the implementation of Sonovia's technology within the denim industry and complete its development ahead of commercialization. Vicunha will fund the required development stages as part of the collaboration.
Vicunha, owned by the Steinbruch family and managed by businessman and art collector Ricardo Steinbruch, operates production and logistics facilities across Latin America with approximately 7,000 employees. The company produces tens of millions of pairs of jeans annually for international fashion brands, including Tommy Hilfiger, Zara, H&M, Calvin Klein, Diesel, American Eagle, and Benetton.
Sonovia's denim dyeing technology utilizes sound waves combined with proprietary indigo dyes. According to survey data commissioned by Sonovia, this technology reduces greenhouse gas emissions by approximately 75%, water consumption by 85%, and energy consumption by 42% compared to traditional dyeing processes.
The global denim market is valued at over 100 billion dollars annually, while the indigo dye market is estimated at 1.5 billion dollars. According to company data, Vicunha holds an 8% share of the 20–30 billion dollar denim fabric market.
Shuki Hershkovitz, Chairman and founder of Sonovia, stated:
"Vicunha's investment is an expression of confidence by one of the leading players in the denim industry in Sonovia's technology and constitutes a turning point in the transition from the development stage to commercialization."
