KIK Custom Products to acquire BioLab Consumer Products business from Chemtura Corporation
CONCORD, Ontario, Oct. 10, 2013 /PRNewswire/ -- KIK Custom Products Inc. ("KIK") today announced it has entered into a stock purchase agreement to acquire the Consumer Products business of Chemtura Corporation (NYSE/Euronext Paris: CHMT). The business, which is headquartered in Lawrenceville, GA, is known as BioLab in North America and Bayrol in Europe. The purchase price is $315 million, payable in cash, subject to customary adjustments, at closing. The acquisition is subject to customary closing conditions and regulatory approvals and is targeted to close on December 31, 2013.
"This acquisition will be an important step in the next-stage growth of our company," said Jeff Nodland, CEO, KIK. "We expect it to contribute to generating strong free cash flow while diversifying our product portfolio and expanding our customers and channels." KIK Classic Division President Stratis Katsiris added, "The BioLab and Bayrol businesses have a history of innovation and excellent service in the markets they serve. We are excited about this acquisition, which enhances our household cleaning portfolio and furthers our ongoing commitment to pool care." KIK entered the pool care business in 2011 with the acquisition of US-based Chem-Lab Products Inc.
KIK is a portfolio company of New York-based private equity firm CI Capital Partners. The transaction will be financed through debt underwritten by Credit Suisse and UBS Investment Bank and an equity investment in KIK made by an affiliate of CI Capital Partners.
About KIK Custom Products
With over $1.2 billion in 2012 sales and more than 3,000 employees, Toronto, Canada-based KIK is one of North America's largest contract and private label manufacturers of consumer, institutional and industrial products. The KIK network includes 14 integrated manufacturing facilities strategically located throughout North America. KIK's product lines include bleach, household cleaners and sanitizers, pool and spa water treatment products and additives, personal care, over-the-counter medicated and pharmaceutical products, all supported by in-house technical expertise and value-added services. KIK produces national brand and private label consumer products for Fortune 500 companies. For more information about KIK, visit www.kikcorp.com.
About CI Capital Partners
CI Capital Partners LLC, a North American private equity firm, has been investing in middle-market companies since 1993. CI Capital forms partnerships with experienced management teams and entrepreneurs to build substantial businesses through add-on acquisitions, organic growth and operational improvements. Since the firm's inception, CI Capital and its portfolio companies have made more than 100 acquisitions representing over $6 billion in enterprise value. CI Capital's existing portfolio consists of companies which collectively generate annual revenue of close to $4 billion, EBITDA of over $350 million and employ approximately 15,000 people. To learn more about CI Capital Partners, please visit www.cicapllc.com.
About Chemtura Corporation
Philadelphia, Pennsylvania-based Chemtura Corporation, with 2012 sales of $2.6 billion,(1) is a global manufacturer and marketer of specialty chemicals, agro chemicals, and pool, spa and home care products. Additional information concerning Chemtura is available at www.chemtura.com.
1 2012 net sales of $2.6 billion reflects discontinued operations treatment for the sale of Chemtura's Antioxidants business.
SOURCE KIK Custom Products Inc.