Beauty products manufacturer KDC acquires ChemAid Laboratories

By Deanna Utroske contact

- Last updated on GMT

Beauty products manufacturer KDC acquires ChemAid Laboratories

Related tags: Kdc, Cosmetics, Hygiene, Leveraged buyout

The Knowlton Development Corporation has augmented its formulating and manufacturing capacity by acquiring ChemAid, which produces skin care, hair care, as well as bath and body treatments.

Headquartered in Knowlton, Québec, KDC is a contract manufacturer for the personal care and beauty industries. With facilities in Knowlton as well as in Mississauga, Ontario, and in the states in Lynchburg, Virginia, and Columbus, Ohio, KDC boasts sales of over $500m and intends to double production in the next 3 years.

Bigger, faster
The private equity firm NOVACAP has owned KDC since 2003. "This the first important acquisition for KDC following its recent recapitalization by NOVACAP Industries IV investment fund, and is part of our overall strategy to double the business in the next 3 to 5 years,"​ said Michel Cote, KDC's chairman and senior partner of NOVACAP in a press release announcing the acquisition.

"We strongly feel that KDC is in a unique position to capitalize on the continued consolidation occurring in this industry,”​ Cote continued. The firm’s plans are rather ambitious: KDC is “aiming for the billion-dollar mark in annual revenues within a few years,” ​according to the release.

More pros at work
The ChemAid Laboratories acquisition will bring its formulation expertise, its Saddle Brook, New Jersey, infrastructure, and its team of knowledgeable professionals to KDC.

"This is a key strategic addition to the KDC family, as we look to further strengthen our innovation capabilities, add new customers and channels and leverage the scale and core competencies of our combined network of companies,” ​said Nicholas Whitley, president and CEO of KDC.

“More importantly, we will also be adding new manufacturing capabilities and a very capable and talented team of professionals,"​ Whitley stated.

Business strategy
KDC’s shrewd growth already has the company well positioned in, for instance, the natural and organic market.

Ingredients developer Botaneco partnered with KDC on an organic emulsifier some years back. “KDC is a natural partner for Botaneco in this venture – having continuously invested in the R&D and manufacturing capabilities to develop and manufacture leading USDA-certified personal care products since 2009, they have the ability to take this category to the mass market,” ​Mike Stangel, then CEO of Botaneco told Cosmetics Design at the time.

Related topics: Business & Financial

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