It’s the second deal in two weeks for Knowlton Development Corporation (KDC/ONE), a leading partner to beauty, health and personal care brands. The company, which recently acquired Alkos, has now announced that it has entered into a conditional agreement for the manufacturing business and associated assets of Swallowfield plc, a business engaged in the development, formulation and production of quality products for many of the world's leading personal care and beauty brands. The price: total cash consideration of approximately £35 million (approximately C$57 million; $43 US), subject to adjustment for the working capital of the manufacturing business at the date of completion.
 
Upon the transaction closing, Swallowfield's Matthew Gazzard will become KDC/ONE Swallowfield president and Jane Fletcher will be KDC/ONE Swallowfield sales & marketing director. Tim Perman will remain chief executive officer of Swallowfield's Brand Business.
 
With more than 140 years of experience delivering world-class products, Swallowfield is an established leader in the personal care and beauty space. Swallowfield's manufacturing business focuses on the development, formulation, and supply of products for customers which include many of the world's leading brands. Having built out key specialist product areas, Swallowfield's differentiated manufacturing offering includes aerosols, hot pour products, cosmetic pencils, fragrance and gifting. Headquartered in Wellington, UK, the manufacturing business has approximately 560 employees and operates across three main facilities in Europe (two in the United Kingdom and one in Czech Republic), as well as a sourcing office in China and sales offices in Paris and New York.
 
Established in 2002, KDC/ONE has grown organically and through acquisitions to become a leading personal care, beauty and home, industrial and auto care brand in North America. In December 2018, KDC/ONE accelerated its international growth strategy by partnering with Cornell Capital, a private investment firm based in New York and Hong Kong, alongside other investors including Caisse de dépôt et placement du Québec (CDPQ), Investissement Québec and HarbourVest Partners. The transaction with Swallowfield represents the latest opportunity for KDC/ONE to expand its manufacturing capabilities in Europe, add strategic technologies and diversify its customer base, while continuing to bolster its existing distribution channels.
 
"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 capitalize on the significant cross-selling opportunities, and further diversify KDC/ONE's customer base and channels."