Canadian contract manufacturer The Knowlton Development Corporation (KDC) has taken its first step into the colour cosmetics market by acquiring US cosmetics formulator and manufacturer Kolmar Labs Group.
The acquisition sees KDC takeover both Kolmar Laboratories and Acupac Packaging, which make up Kolmar Labs Group, as well as its 500 employees.
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.”
Through the acquisition, KDC hopes to double its business and reach the billion-dollar annual revenues mark in the next three to five years. KDC also plans to double its production by 2018.
Robert Edmonds, President and CEO of Kolmar Labs Group, added: "KDC is a strong, proven leader in the outsourcing business, and we feel that this will be a tremendous combination which will add value for customers, employees and all stakeholders, leading to a very bright future for both companies."