Knowlton Development Corporation (KDC), a Canadian contract manufacturer of beauty products, has made its second acquisition in two weeks.
KDC has snapped up US contract manufacturer Cosmetic Technologies just a week after its bought US cosmetics formulator and manufacturer Kolmar Labs Group (for more on this, click here). Even earlier in the year, KDC acquired ChemAid, a formulator and manufacturer of skin, hair and body care products, also based in the US.
While Cosmetic Technologies is a smaller acquisition than Kolmar, KDC’s Chairman and Senior Partner at parent company Novacap, noted it is nonetheless “very strategic”. He said: “It [Cosmetic Technologies] has an impressive track record of financial performance in recent years and is well positioned for continued long term future growth. It also allows us to widen our manufacturing and servicing capabilities, and will contribute in the mid to long term to the success of all our clients and to our positioning as an industry leader all over North America.”
The acquisition is being financed by Novacap in partnership with La Caisse de dépôt et placement du Québec, the Fonds de solidarité FTQ, Investissement-Québec, Export Development Canada (EDC), Fondaction CSN and other institutional partners.
Ron Lewis, President and Founder of Cosmetic Technologies, added: “The growing demand for our products has the potential to more than double the Company’s size in years to come. We are already well-positioned to handle such growth with our advanced technical expertise and substantial equipment and infrastructure investments already completed, but KDC offers us the expertise, sales force, facilities and network to achieve this objective. Its excellent track record of sales growth, operational excellence, and superior customer service will add to our history of reliability, competence, and consistency, which has led to a continuous flow of new customers through industry referrals.”