Recover™, a materials science firm and producer of sustainable, premium recycled cotton fiber and cotton fiber blends, announced that it has closed a $100m minority equity capital investment by the Sustainable Investing business within Goldman Sachs Asset Management. Goldman Sachs is investing alongside majority shareholder STORY3 Capital Partners.
How will Recover use the new infusion?
Recover will use the investment to accelerate its global expansion and production capacity, allowing more rapid adoption of sustainability initiatives by leading brands and retailers.
Recover serves some of the most recognizable retailers, brands and vendors, including, Primark, Inditex, C&A, Revolve and Lands’ End. Recover’s proprietary recycled cotton fiber 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 fiber per year by 2026, saving up to 5 trillion liters 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 fiber, based on industry research.
What were the executives’ thoughts on the funding?
“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 Chief Executive Officer of Recover.
“Goldman Sachs is committed to partnering with innovative businesses that help drive sustainability. Recover is a leading disruptor in the apparel and textiles space with much-needed sustainable solutions grounded in materials science,” said Letitia Webster, Managing Director and Chief Sustainability Officer of Goldman Sachs Asset Management Division.
“We’re excited to invest in Recover’s growth to accelerate production and development of its tech.” As part of the transaction, Webster will join the Board of Directors of Recover.
Ben Malka, Operating Partner at STORY3 Capital Partners and Executive Chairman of Recover, said, “Recover has perfected the art and science of scaled production of sustainable recycled cotton fiber for over 70 years across generations of the Ferre family in Spain.”
“Today, Recover offers a solution grounded in proprietary IP that provides cost-competitive, maximum-performance recycled cotton fiber for both rotor and ring-spinning applications.”
What is Recover’s stance on sustainability?
The Recover brand is a vital part of retailers’ and brands’ sustainability commitments, and a growing number of Recover’s clients are co-branding products with Recover to showcase that they have been produced with the firm’s recycled cotton fiber. Operating in the $50bn cotton market, Recover is a leading innovator business that 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 fiber in Primark products, this deal will enable us to meet our pledge to make more sustainable fashion affordable to our clients.”
Commenting on the funding, Peter Comisar, Managing Partner of STORY3 Capital Partners and former Partner of Goldman Sachs, said, “We are incredibly proud that our collaboration with Recover has enabled the business to dramatically scale since our acquisition in 2020.”
“Over the coming years, we will see radical transformation of large industries with sustainable solutions. Recover is well positioned to be the global leader in sustainable cotton fiber and we are excited to partner with Goldman Sachs on the next phase of Recover’s evolution.”