KDC, a contract manufacturer of health and beauty-care products and a portfolio company of Novacap, has acquired Cosmetic Technologies.
Cosmetic Technologies is a contract manufacturer of cosmetics and personal care products. Services include product conceptualization, formulation, manufacturing, packaging, and warehousing. The company was founded in 1992 by its President Ron Lewis. Cosmetic Technologies operates from a 100,000 square foot facility near Los Angeles in Newbury Park, CA (www.cosmetictechnologies.com).
This transaction follows the acquisition last week by KDC of Kolmar, a New York-based formulator and manufacturer of color cosmetics, personal care and skincare products and, ten months ago, of ChemAid, a formulator and manufacturer of skincare, hair care, and bath & body products based in New Jersey.
KDC is a contract manufacturer of regulated and non-regulated personal care products with annual sales of approximately $650 million. The company has approximately 2,500 employees and has eight operating facilities. KDC is headquartered near Montreal in Longueuil, QC (www.kdc-companies.com).
“Cosmetic Technologies is a relatively smaller acquisition than Kolmar, but it is nonetheless very strategic for KDC,” said Michel Coté, KDC’s Chairman and Senior Partner at NOVACAP. “It 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.”
Novacap, with $1.5 billion in assets under management, invests in middle market companies within traditional industries and in companies in the information and communication technologies sector. The firm was founded in 1981 and is based in Quebec (www.novacap.ca).
The acquisition of Cosmetic Technologies is being financed by NOVACAP, through its NOVACAP Industries IV fund, and through its co-investors La Caisse de dépôt et placement du Québec; the Fonds de solidarité FTQ; Investissement-Québec; Export Development Canada; and Fondaction CSN. Novacap and its co-investors initially invested in KDC in 2002.
© 2015 PEPD • Private Equity’s Leading News Magazine • 10-22-15
