Nextil sells Portugal production facilities in 4.4 million euros deal

Madrid – Spanish textile multinational Nextil, which currently operates its main production hubs in Portugal and Guatemala, is continuing to optimise its business model with the sale of all its production facilities in northern Portugal. This transaction, executed under a sale and leaseback agreement, allows the company to continue operating at the same sites, now as a tenant.

According to details shared by Nextil’s management, the group has sold all its Portuguese production facilities—located in the districts of Braga and Viana do Castelo—for 4.4 million euros. The deal was executed through its subsidiaries Sici 93, which specialises in fashion garments, swimwear, and luxury textiles, and Playvest, which focuses on sports fabrics and apparel. A 25-year lease agreement has been signed with the new property owner, ensuring uninterrupted operations at these sites.

“The Nextil Group has successfully completed the sale of all its production facilities in northern Portugal in a €4.4 million sale and leaseback transaction,” the company said, adding that the long-term lease guarantees full continuity of its industrial operations, preserves production stability, and maintains its presence in the region. Management emphasised that the move marks a significant step in the company’s industrial and financial transformation, aimed at consolidating a model that blends profitability, sustainability, and long-term growth.

This divestment forms part of Nextil’s 2024–2026 Strategic Plan, first introduced to investors and the market in June 2024. The plan outlines the group’s roadmap for transformation and expansion in the coming years.

Of the 4.4 million euros raised, 740,000 euros will be used to cancel the mortgage debt on the sold properties. The transaction is expected to generate an accounting profit of approximately 2 million euros. The entire proceeds from the sale will be reinvested to support Nextil’s acquisition strategy, specifically to strengthen its footprint in the premium and luxury fashion segment, reinforcing its position as a strategic supplier to high-end European brands.

As part of its inorganic growth strategy, which involves expansion through acquisitions rather than internal development alone, Nextil announced in April 2025 its intent to acquire a Portuguese company specialising in luxury textiles. The move is expected to scale up operations within its luxury garments division, currently anchored by Sici 93, which reported revenues of 21.4 million euros in 2024. The group projects that this division could reach 30 million euros in revenue by 2026, even without factoring in the contributions from the upcoming acquisition—demonstrating the strong organic growth potential Nextil sees within its existing operations.