Leading contract manufacturer of health and beauty care products The Knowlton Development Corporation (KDC) has announced the acquisition of Kolmar Labs Group companies, Kolmar Laboratories and Aqupac Packaging.
Based in New York, Kolmar is a custom formulator and manufacturer of color cosmetics, personal care and skin care products. Services offered include product development, R&D innovation, QA/QC services, regulatory services and manufacturing solutions for beauty and skin care brands.
KDC is currently a leader in many personal care categories, such as deodorants, hair care, bath, body and skin care, however the acquisition will represent its first footsteps into the color cosmetics market. KDC is said to eye Kolmar as a growth platform for the company, developing new market possibilities and utilizing its scale and core competencies of its combined network of companies, facilities and clients. Not only does KDC plan to stay at the only North American player with the critical mass needed to play a major role internationally, it also plans to double its production by 2018 and become the leader in its industry.
The acquisition follows the recapitilzation of KDC by its parent company NOVACAP in 2014. This was done through its NOVACAP Industries IV, in partnership with la Caisse de dépôt et placement du Québec (CDPQ), the Fonds de solidarité FTQ, Investissement-Québec, Export Development Canada (EDC), Fondaction CSN and other institutional partners.
Nicholas Whitley, President and CEO of KDC, said, “We believe that this category has strong business fundamentals and significant growth prospects. We were particularly attracted to Kolmar’s innovation-based business model, its strong physical plant and equipment technologies, its outstanding customer base, and, most of all, its team of talented, highly skilled professionals. KDC, Kolmar and Acupac have very similar operating principles and business cultures, representing from the onset a strong alignment. We will welcome some of Kolmar’s and Acupac’s best practices into our business, while also exporting some of our best practices. The synergies from our alignment will bring benefit to all.”
Michel Cote, KDC’s Chairman and Senior Partner of KDC owner company, NOVACAP, continued, “With this acquisition, KDC and its partners continue to deliver on their promise to double the business and reach the billion-dollar mark in annual revenues between the next three to five years. Within one year since the recapitalization of KDC, we have already invested more than $100 M in the development of the company, and in acquisitions such as ChemAid and Kolmar, each of which further leverages KDC’s position as segment leader.”