Spinnova Plc, the Finnish materials technology company that turns wood pulp and waste into textile fibre, said on Thursday it has signed a non-binding letter of intent to acquire Portuguese yarn spinner Tearfil – Indústria Têxtil, alongside a planned €1.5 million bridge loan to support the target through debt restructuring.
Tearfil, a long-standing development partner in Spinnova’s ecosystem, has played a central role in advancing SPINNOVA fibre toward commercial-scale yarn production. Bringing spinning capabilities in-house would let Spinnova shorten development cycles, tighten control over converting its fibre into customer-ready yarns, and speed commercialization with brand partners, the company said.
Under the framework outlined in the letter of intent, Spinnova would pay an initial valuation of €500,000 in cash and shares for all outstanding Tearfil equity, with completion targeted for the first quarter of 2027. The deal remains subject to due diligence, Spinnova board approval, and other customary conditions.
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Separately, Spinnova plans to extend Tearfil a €1.5 million bridge loan to cover working capital during a Portuguese court-supervised restructuring process known as PER, aimed at renegotiating the yarn maker’s debts without triggering insolvency. The loan would carry an interest rate of 12-month EURIBOR plus 2%, mature after one year, and include early repayment triggers should Spinnova walk away from the acquisition. Definitive loan documentation is expected within weeks.
Tearfil reported turnover of €8.6 million in 2025, down from €12.9 million a year earlier, with a net loss of €3.3 million as short-term liabilities reached €7.9 million.
CEO Janne Poranen said the tie-up would strengthen Spinnova’s ability to scale its wood-based fibre technology and support broader industry adoption. Spinnova shares trade on Nasdaq First North Growth Market Finland under the ticker SPINN.