KDC/ONE was acquired by Cornell Capital, along with Caisse de dépôt et placement du Québec (CDPQ), Investissement Québec (IQ) and HarbourVest Partners (HarbourVest) in December last year
Image: KDC/ONE agrees to merge with HCT Group. Photo: courtesy of PR Newswire.
Knowlton Development Corporation (KDC/ONE) has signed an agreement with HCT Group to create a comprehensive global manufacturing and packaging solutions provider for the beauty and personal care industry.
Financial details of the transaction were not disclosed.
Upon completion of the deal, KDC/ONE president and CEO Nicholas Whitley and HCT president and CEO Tim Thorpe will continue as CEOs of each business.
Established in 2002, KDC/ONE has 16 manufacturing facilities across North America, the UK, France and the Czech Republic. The company provides innovation, operational excellence, and speed to market to beauty, personal, and speciality companies across the globe.
KDC/ONE was acquired by Cornell Capital, along with Caisse de dépôt et placement du Québec (CDPQ), Investissement Québec (IQ) and HarbourVest Partners (HarbourVest) in December last year.
From that period, KDC/ONE has made three acquisitions to scale the platform, secure new technologies and expand across the globe.
Whitley said: “Our vertically integrated platform will offer the industry a true one-stop solution.
“With the support of our partners at Cornell Capital, as well as CDPQ, IQ and HarbourVest, we have been able to build our reputation as a top-tier innovator for an expanded base of customers.
“HCT’s cutting-edge designs, engineering, manufacturing and global reach will enable us to further elevate our product and service offerings to better serve and anticipate the evolving needs of our valued customers.”
The transaction is estimated to be completed in early 2020
HCT Group provides full-service, turnkey solutions across concept development and design, manufacturing, fill and assembly, and logistics and operations.
Headquartered in Santa Monica, HCT has offices in New York, New Jersey, London, Paris, Milan, Hong Kong, South Korea and Shanghai along with more than 400 clients.
Financing for the deal includes a significant equity reinvestment from Cornell Capital along with other existing financial sponsors and HCT management.
UBS Securities and Jefferies are serving as joint lead arrangers for the deal, with UBS as the left lead arranger.
On the transaction, Jefferies Group is serving as financial advisor to KDC/ONE and Cornell Capital, while Weil, Gotshal & Manges is serving as the legal advisor.
Furthermore, Houlihan Lokey is serving as financial advisor to HCT, while Morgan Lewis & Bockius is acting as its legal advisor.
Subject to customary closing conditions, the transaction is estimated to be completed in early 2020.