KDC announces the acquisition of Northern Labs, Inc.
Knowlton Development Corporation ("KDC"), a leading contract manufacturer of health and beauty-care products based in Québec, announces the acquisition of Northern Labs, Inc. ("Northern Labs"), a full-service liquid product contract manufacturer serving the world's leading CPG and OTC companies for over 70 years. The transaction is being financed by the private equity firm Novacap, in partnership with La Caisse de dépôt et placement du Québec, the Fonds de solidarité FTQ, Investissement Québec, Export Development Canada, Fondaction CSN and other institutional partners.
Centrally located in Wisconsin, Northern Labs employs more than 200 full-time employees in state-of-the-art facilities totaling over 275,000 square feet. Its offering includes turnkey manufacturing solutions for large fill and unique package types, QA/QC services and regulatory services. While KDC is active in many personal care categories such as deodorants, hair care, bath and body, and skin care products, Northern Labs represents a significant opportunity in the categories of home, laundry and automotive care, as well as industrial products.
"The Specialty Household market category offers a series of growth opportunities for both our companies," said Nicholas Whitley, President and CEO of KDC. "KDC and Northern Labs have similar values and business cultures, and we strongly feel that Northern Labs' team of highly skilled professionals, and its reputation for product quality, consistency, and customer service will align well with our operating principles, and will bring tangible benefits by leveraging the scale and core competencies of our combined network of companies, facilities, existing and future clients."
"This acquisition is adding a significant capacity to KDC's portfolio, which will in turn create opportunities to fuel KDC's growth," added Michel Côté, KDC's Chairman and Senior Partner of Novacap. Since 2014, with our partners, we have been able, through both organic growth and acquisitions, to position KDC as a world-class leader in the supply of high quality, innovative products and delivery solutions to prominent brands."
"For Northern Labs, KDC represents a win-win proposition," said J.D. Culea, President and CEO of Northern Labs. "KDC has a solid history of investing in improving the business and enabling its people, so we can expect that our partnership will propel Northern Labs to a new and superior level, as a leading consumer products focused full-service contract manufacturer serving the U.S. market."
The addition of Northern Labs to KDC's portfolio will enhance the Speciality Household pillar that was established when KDC acquired Aromair in November. KDC's future plan remains to be the industry category leader and the only North American player with the critical mass needed to play a major role internationally.