KDC Acquires Kolmar Labs Group

Contract manufacturer KDC (The Knowlton Development Corporation), Longueuil, Québec, has acquired Kolmar Labs Group companies, including Kolmar Laboratories Inc. and Acupac Packaging Inc.
 
Kolmar is a New-York-based custom formulator and manufacturer of color cosmetics, personal care and skincare products, offering product development, R&D innovation, QA/QC services, regulatory services and manufacturing solutions for beauty and skin care brands.
 
Kolmar Laboratories and Acupac Packaging together employ 500 full-time employees in state-of-the-art facilities totalling more than340,000 feet.
 
This acquisition follows the 2014 recapitalization of KDC by parent company NOVACAP, through its NOVACAP Industries IV, in partnership with la Caisse de dépôt et placement du Québec (CDPQ), the Fonds de solidarité FTQ, Investissement-Québec, Export Development Canada (EDC), Fondaction CSN and other institutional partners.
 
The deal is one more step forward in KDC’s evolution as world-class leader in the supply of high quality, innovative products and delivery solutions to prominent brands. While KDC is active in many personal care categories, such as deodorants, hair care, bath and body, and skin care, Kolmar represents its first foray into the color cosmetics category.
 
“We believe that this category has strong business fundamentals and significant growth prospects,” said Nicholas Whitley, president and CEO of KDC. “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. We will welcome some of Kolmar’s and Acupac’s best practices into our business, while also exporting some of our best practices. The synergies from our alignment will bring benefit to all.”
 
 “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,” said Robert Edmonds, president and CEO of  Kolmar Labs Group. “KDC has a solid history of investing in their businesses, their plants and their people, and we can expect that to continue with Kolmar. KDC has an excellent track record of sales growth, operational excellence, and superior customer service and shares our vision for Kolmar and Acupac as the best custom manufacturer in North America for health, personal care, beauty and medical markets.”
 
KDC says it plans to double its production by 2018 and become the leader in its industry, while remaining the only North American player with the critical mass needed to play a major role internationally.