Knowlton Development Corporation (KDC/ONE), a partner to beauty, health and personal care brands, has agreed to acquire Swallowfield’s manufacturing business and associated assets for approximately £35 million (almost €39 million).
UK-based Swallowfield is an established leader in the personal care and beauty industry; the company’s manufacturing offering includes aerosols, hot pour products, cosmetic pencils, fragrance and gifting.
Its manufacturing business employed around 560 staff and operates across two facilities in the UK and one in the Czech Republic. Swallowfield also has a sourcing office in China and sales offices in Paris and New York.
"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," said Nicholas Whitley, President and CEO of KDC/ONE.
"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 capitalise on the significant cross-selling opportunities, and further diversify KDC/ONE's customer base and channels."
KDC/ONE partnered with private investment firm Cornell Capital in December 2018, in addition to other investors including Caisse de dépôt et placement du Québec (CDPQ), Investissement Québec and HarbourVest Partners.
"We believe that by joining a larger, focused entity, our manufacturing business will move forward with a clearer vision for the future while protecting the value of the business," added Brendan Hynes, chairman of Swallowfield. "We're excited the team will have access to world-class resources and a broader platform to continue to expand product lines and accelerate growth."
"We are excited to join the KDC/ONE team, as we bring together the unmatched product and technology portfolios and world-class manufacturing capabilities of these two companies," said Matthew Gazzard, CFO of Swallowfield, who will become president of the new entity KDC/ONE Swallowfield upon closing of the transaction.
“As part of a private company, Swallowfield will be well positioned to continue investing in new technology and bringing product ideas to life, while creating increased value for all stakeholders."
The transaction, which is expected to close in August 2019, is subject to approval of Swallowfield shareholders.