Contract manufacturer Knowlton Development Corporation (KDC/ONE) has agreed to acquire Zobele Group, a manufacturer of home and air care products, from Doughty Hanson & Co.
Doughty Hanson, a London-based private equity firm, acquired Zobele from its founding family – who maintained a minority equity position – in December 2006. Zobele was founded in Italy in 1919 and in the early years, its main activity was the manufacture of flypaper.
Today, Zobele Group is a contract manufacturer of air fresheners, insecticides and repellents, fabric softeners and detergents, and personal care products including cosmetics, deodorants, and fragrances. Zobele provides its products to more than 130 customers under 150 brands including many large multinational consumer goods companies including Reckitt Benckiser, Procter & Gamble, and Henkel.
In addition to plants in Italy, Zobele has manufacturing operations in China, the United States, Mexico, India, Brazil and Bulgaria and has just more than 5,000 employees. Zobele is headquartered northeast of Milan in Trento, Italy and is led by CEO Roberto Schianchi. Post-closing, Mr. Schianchi and the current management team will continue to run the Zobele business under the KDC/ONE umbrella, and Zobele’s headquarters will remain in Italy.
KDC/ONE is a contract manufacturer of regulated and non-regulated personal care products including lotions, soaps, fragrances, cosmetics and deodorants. The company also manufactures home care products (disinfectants, cleaners, and detergents), industrial products (floor waxes, protectants, cleaners, degreasers, and disinfectants), and auto care products (car waxes, protectants, cleaners, and air care).
Cornell Capital and HarbourVest acquired KDC/ONE from Novacap in December 2018. At that time, Caisse de dépôt et placement du Québec (CDPQ) and Investissement Québec (IQ) rolled over significant stakes of their equity as part of the transaction. Both CDPQ and IQ co-invested with Novacap on its buy of KDC/ONE in October 2014.
“As a market leader in its categories, Zobele is the right partner for us as we look to embark on our next chapter of strategic growth,” said Nicholas Whitley, CEO of KDC/ONE. “With a truly scaled international footprint and customer base, the combined company will drive unparalleled innovation for our partners and significant expansion into key geographic and end markets.”
KDC/ONE, founded in 2002, has approximately 7,000 employees and is headquartered near Montreal in Longueuil, Québec with 18 operating facilities throughout North America, the UK, France and the Czech Republic.
“This strategic and highly complementary transaction positions KDC/ONE for continued success as a global brand partner that can deliver bespoke innovation at an accelerated pace,” said Justine Cheng, chair of the KDC/ONE board of directors and a partner at Cornell Capital. “We are pleased to continue to support KDC/ONE as it partners with Zobele to continue building the company’s platform as a global one-stop-shop for consumer goods companies across the beauty, personal care and household products categories.”
Earlier this year, KDC/ONE completed its merger with HCT Group, a California-based contract manufacturer of cosmetics products. Cornell Capital and HarbourVest remain as the company’s majority owner.
Cornell Capital was founded in 2013 by Henry Cornell, the former Vice Chairman of Goldman Sachs’ Merchant Banking Division, to invest in companies in the consumer, energy, financial and industrial sectors. In June 2018, the firm held a final closing of its inaugural private equity fund, Cornell Capital Partners LP, with total capital commitments of $1.3 billion. The firm has offices in New York and Hong Kong.
HarbourVest invests in venture capital, buyout, mezzanine debt, credit, and real estate through primary fund investments, secondary purchases, and direct co-investments. The firm has more than 500 employees, including 125 investment professionals, located in Asia, Europe, Latin America, and the United States. HarbourVest is headquartered in Boston with additional offices in Beijing, Bogotá, Hong Kong, London, Seoul, Tel Aviv, Tokyo, and Toronto.
Debt financing for the buy of Zobele is being led by UBS Securities and Jefferies Group. Guggenheim Securities is the financial advisor to Zobele, and Jefferies Group is the financial advisor to KDC/ONE.
© 2020 Private Equity Professional | February 20, 2020
