KDC further diversifies beauty manufacturing business with acquisition of Northern Labs Inc

13-Dec-2017 - Last updated on 13-Dec-2017 at 16:33 GMT

The personal care contract manufacturing company has been growing swiftly, buying up related businesses—this time it’s a manufacturer that specializes in liquid, gel, lotion, and paste CPG for not only beauty brands but also those in the home, laundry, and automotive sectors.

The private equity firm Novacap owns KDC and is financing the acquisitions. Giving a bit of insight in to the firm’s strategy, Michel Côté, KDC's chairman and senior partner of Novacap, tells the press, “This acquisition is adding a significant capacity to KDC's portfolio, which will in turn create opportunities to fuel KDC's growth.”

In the press release announcing the Northern Labs Inc acquisition, he goes on to say that, “Since 2014, with our partners, we have been able, through both organic growth and acquisitions, to position KDC as a world-class leader in the supply of high quality, innovative products and delivery solutions to prominent brands.”

Beyond beauty

Last month, as Cosmetics Design reported, Canada-based KDC decisively added home care manufacturing to the company business by acquiring the Aromair Fine Fragrance Company.

“We believe that the Home Care category offers a series of growth opportunities,” Nicholas Whitley, KDC’s CEO, explained at the time. And, Côté agreed, saying, “This acquisition is adding a product category that, we believe, will add significant opportunities to expand KDC's growth.”

Northern Labs

Adding the Northern Labs business further secures KDC’s spot in the home care contract manufacturing space.

It also brings additional personal care manufacturing, filling, and related capabilities. “Centrally located in Wisconsin, Northern Labs employs more than 200 full-time employees in state-of-the-art facilities totaling over 275,000 square feet. Its offering includes turnkey manufacturing solutions for large fill and unique package types, QA/QC services and regulatory services,” according to the press release.

And the Northern Labs deal brings laundry, automotive, and industrial manufacturing to KDC as well. “KDC and Northern Labs have similar values and business cultures, and we strongly feel that Northern Labs' team of highly skilled professionals, and its reputation for product quality, consistency, and customer service will align well with our operating principles, and will bring tangible benefits by leveraging the scale and core competencies of our combined network of companies, facilities, existing and future clients,” says Whitley.