Alexium International Group Limited (Alexium) announced today it has received a letter of intent from Duro Textiles, LLC to license Alexium's novel flame retardant (FR) treatment under an exclusive commercial agreement. The scope of the license would cover Duro's nylon product areas for military, government agencies, upholstery, and industrial workwear markets in North America.
Duro Textiles is one of the United States' largest dyers, printers, finishers and distributors of textile products. By leveraging technological advances, production experiences and superior quality, Duro is a leader and foremost solution provider for military fabric needs in the US. Duro's military products range from light to heavy weight fabrics that are used in everything from ultra light-weight-breathable ponchos, tents, sleep systems, physical training uniforms, to the extreme durability of ballistic nylon tactical outerwear. Duro is also a major fabric supplier to the performance apparel, industrial, tactical, home, and hospitality markets. Duro Industries and sister companies Galey & Lord, and Best Textiles are part of Patriarch Partners, LLC, a private equity firm managing $7 billion in assets in more than 70 companies.
Patriarch Partners-Textile Platform Managing Director Edward W. Ricci II said they are elated to be entering into this strategic alliance with Alexium to bring a revolutionary technology for nylon to various markets.
"We feel that this technology is truly game-changing and we are eager to further develop and commercialize this exciting technology for both military and commercial applications."
Alexium Chief Technology Officer Dr Bob Brookins said the eco-friendly flame retardant treatment is based on a new flame retardant mechanism that Alexium has discovered and developed for nylon fabrics.
"This innovative technology for synthetic fabrics is based on a unique charring mechanism that
extinguishes the flame while preventing any melting or dripping. The properties offer a broad range of applications and we value Duro's partnership in future development and full commercialization," he said.
Over the coming weeks, both parties will work to formalize the agreement and move aggressively towards transitioning the treatment to a number of commercial nylon customers. Duro and Alexium have agreed to key terms of a commercial agreement. While the specific terms of the license will remain confidential, the proposed agreement includes an upfront license fee, development cost sharing, machine sales, milestone payments, and royalties based on product sales with minimum quantities.
When fully executed, both parties would anticipate launching a number of new FR nylon fabrics in the next year, and building production capacity to address a lucrative market opportunity.
Together, Duro and Alexium are targeting a market opportunity in excess of 4 million linear yards of nylon. Revenues derived from the agreement will initially be used to accelerate the transition to full production. After a technical ramp-up and market introduction period, this agreement is expected to establish a solid revenue stream for Alexium and will assist the company in expanding into other technology platform areas.
Alexium's Chief Operating Officer and Executive Director Stefan Susta said they appreciate Duro's presence and strength in key markets Alexium wants to serve.
"We recognize Duro's industrial production capacity, distribution and sales channels, and their ability to make a sizable investment in this technology," he said.
While closing the agreement with Duro in the North American region, Alexium is also currently seeking and discussing similar partnerships in other geographic regions, and hopes to initiate deals in Australasia, Europe, and Asia.
Duro will be exhibiting the latest fabric technology advances at the Techtextil North America show in Atlanta April 24-26, 2012 at the Georgia World Congress Center in Atlanta, Georgia.