Personal care manufacturer KDC/ONE makes second acquisition this month
“Following KDC/ONE's successful acquisition of Paris-based ALKOS Group earlier this month, we are confident that Swallowfield's operations will further enhance our strategic presence in the region and solidify our leadership in beauty, health and personal care around the world,” says Nicholas Whitley, president and CEO of KDC/ONE, in this week’s press release.
Why buy Swallowfield’s manufacturing
The £35m deal requires approval by Swallowfield’s board and is expected to close sometime next month. KDC/ONE is not acquiring Swallowfield’s owned brands division. Though that piece of the business will likely be renamed.
With headquarters in Wellington, Somerset, England, Swallowfield specializes in cosmetics and personal care manufacturing with expertise in product development, formulation, design, sourcing, and quality assurance. According to this week’s release, “Swallowfield's differentiated manufacturing offering includes aerosols, hot pour products, cosmetic pencils, fragrance and gifting.”
As Whitley explains it, acquiring Swallowfield’s manufacturing business makes sense because “the Company's international capabilities make it a natural complement to KDC/ONE, and its strong reputation for quality, service and innovation matches KDC/ONE's own dedication to high-touch innovation, operational excellence and speed to market. Together with Cornell Capital, we look forward to working closely with Swallowfield's team to capitalize on the significant cross-selling opportunities, and further diversify KDC/ONE's customer base and channels.” (Cornell Capital has owned KDC/ONE since 2018.)
In even simpler terms, “The transaction with Swallowfield represents the latest opportunity for KDC/ONE to expand its manufacturing capabilities in Europe, add strategic technologies and diversify its customer base, while continuing to bolster its existing distribution channels,” according to the release.
Who goes and who stays
The current group finance director of Swallowfield Matthew Gazzard will be KDC/ONE Swallowfield president once the deal closes. And Jane Fletcher, who’s been with Swallowfield since 1996 and served as group sales and marketing director since 2004 will become KDC/ONE Swallowfield sales and marketing director at that time. CEO Tim Perman will stay on with the Swallowfield Brand Business.
All Swallowfield’s manufacturing employees will move along with the business and assets to become part of what will be formally known as KDC/ONE Swallowfield.
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Deanna Utroske, CosmeticsDesign.com Editor, covers beauty business news in the Americas region and publishes the weekly Indie Beauty Profile column, showcasing the inspiring work of entrepreneurs and innovative brands.
