Knowlton Development Corporation (KDC/ONE) is acquiring the manufacturing business and associated assets of Swallowfield PLC (Swallowfield), for a total cash consideration of approximately £35 million.
Based out of Wellington, U.K., Swallowfield specializes in developing, formulating and producing products for personal care and beauty brands. It’s manufacturing offerings includes aerosols, hot pour products, cosmetic pencils, fragrance and gifting.
It has over 500 employees, operating across three facilities in Europe (two in the U.K., one in the Czech Republic), as well as offices in China, Paris and New York City.
The move will bolster KDC/ONE’s European manufacturing capabilities in Europe, diversify its customer base and boost existing distribution channels. The deal is slated to close in August 2019, pending approval of Swallowfield shareholders.
Following the transaction, Swallowfield will retain the owned brands division under the ownership of PLC, and will move its headquarters to Teddington. It is expected to change its name to Brand Architekts Group Plc. The manufacturing business and its associated assets will be wholly owned by KDC/ONE, operating as KDC/ONE Swallowfield with all employees transferring to KDC/ONE.
“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.”
He continued: “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 capitalize on the significant cross-selling opportunities, and further diversify KDC/ONE's customer base and channels.”
“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,” added Matthew Gazzard, chief financial officer of Swallowfield (who will serve as president of KDC/ONE Swallowfield Ltd at the close of 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.”