Carlyle seeks to sell its stake in Spain-based Jeanologia

Madrid – Following its initial investment in the Valencia-based company in early 2019, US investment firm Carlyle has reportedly decided to fully divest from Jeanologia. Carlyle also holds investments in other prominent Spanish and fashion sector companies, such as Codorniu and the Italian brand Golden Goose. Jeanologia specialises in eco-efficient technological solutions for the textile industry, and Carlyle currently controls approximately 40 percent of its share capital.

The Financial Times reported the terms of Carlyle's entry into Jeanologia's capital in early March 2019. The respected British financial publication stated that the US private equity firm had acquired 40 percent of the Valencia-based company. This transaction, according to sources close to the acquisition, valued the company at approximately 150 million euros. Based on these figures, Carlyle's purchase of the 40 percent stake in Jeanologia would be valued at around 60 million euros.

Just three days after the financial media broke the story, Carlyle confirmed the transaction without specifying the exact terms or the percentage of Jeanologia's capital it had acquired. The firm did clarify, however, that the purchase was limited to a significant minority stake. This stake was not acquired from the company or its founding family, the Silla Vidal family, but from the Spanish private equity firm MCH Private Equity.

MCH had entered the Valencia-based company in December 2015, acquiring a 35 percent stake for approximately 20 million euros. It was reported at the time that MCH would retain a minority share in Jeanologia. The firm later decided to sell this remaining stake, leaving the Silla Vidal family as the majority shareholder and Carlyle as the key minority shareholder.

At the time, Enrique Silla, chief executive officer of Jeanologia, stated: “Carlyle's entry into Jeanologia's capital will help us advance towards our aspirational goal of eliminating wastewater in the textile industry by 2023, making the manufacturing of traditional blue jeans an industrial and technological standard.”

Alex Wagenberg, managing director of The Carlyle Group, added: “We look forward to supporting Jeanologia's explosive growth by developing its innovative product range and future business opportunities.” The company closed the 2019 financial year—the last to be completed before the effects of the Covid-19 pandemic—with sales of approximately 104.48 million euros (a 3.38 percent year-over-year decrease) and a net profit of around 28.7 million euros (a 13.29 percent decrease).

Seeking a buyer for 40 percent of Jeanologia

Since then, with Carlyle remaining a key minority investor, the Valencia-based company has not fully realised the potential the investment firm saw in 2019. Compared to the declining figures at the end of that year, the Valencian textile company closed its 2024 financial year with a turnover of approximately 45 million euros (a 17.2 percent year-over-year increase) and a net profit of around 4.3 million euros (a 43.33 percent increase). While these results show positive growth compared to 2023, the company's revenue remains 56.93 percent below 2019 levels, and its profits are 85 percent lower.

In this context, Carlyle has reportedly decided to fully divest from the Valencia-based company, which specialises in eco-efficient technologies for the textile industry, specifically for manufacturing denim garments and fabrics. Since its founding in Valencia in 1994, its technologies have been implemented into the value chains of major fashion brands and houses, including Levi’s; Uniqlo; Gap; Inditex; American Eagle; Abercrombie & Fitch; Mango; Chanel; Prada; Balenciaga and Guess.

The Spanish company estimates that its technologies are currently used to produce more than 40 percent of all jeans manufactured worldwide. This operational scale, however, does not appear to be reflected in the company's financial statements. Coinciding with its 30th anniversary in 2025, Jeanologia announced it was preparing to open a new chapter of development by “integrating artificial intelligence, robotics and advanced automation to create smarter, more precise and efficient processes”.

For this new chapter, which began to take shape in 2026 with the launch of “Billy”—presented as “the first artificial intelligence developed specifically for denim design”—the company's founders aim to continue leading Jeanologia with their 60 percent stake. This was reported by sources close to the company to the financial publication Expansión. The publication also reported that Carlyle has hired Banco Santander to act as a financial advisor and prepare the sale process for the 40 percent stake still held by the US investment firm.

This article was translated to English using an AI tool.

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