CONCORD, Ontario, Jan. 2, 2014 /PRNewswire/ -- KIK Custom Products Inc. ("KIK") today announced it successfully completed its acquisition of the consumer products business of Chemtura Corporation (NYSE/EuroNext Paris: CHMT) on December 31, 2013 for an adjusted purchase price of $300 million. The $15 million reduction reflects the resolution of certain pre-closing matters by the parties. The purchase price is subject to a post-closing adjustment for working capital and assumed pension liabilities.
The acquisition included Lawrenceville, Ga.-based BioLab's pool products businesses in North America, South Africa and Australia/New Zealand; its European division known as Bayrol; as well as its household care business in North America and dedicated manufacturing plants in Conyers, Ga.; Lake Charles, La.; and Atlantis, South Africa.
"This acquisition marks a major step in the strategic growth of our company," said Jeff Nodland, KIK's CEO. "We look forward to the integrated businesses generating strong free cash flow while diversifying our products and expanding our customers, channels and geographic reach."
KIK Classic Division President Stratis Katsiris added, "We are delighted to welcome BioLab and Bayrol employees to the KIK family. We are already at work building on BioLab's tradition of market leadership and product innovation. As an integrated team, we will create an efficient, service-focused business committed to offering a winning portfolio of household, pool and spa care, and pool specialty products to customers across the channels we serve. Our investment in BioLab, coming only a few short months after the announcement of our license agreement to take the iconic Clorox brand to market in pool care, underscores our continued commitment to the growth of the pool and spa category."
KIK entered the pool care business in 2011 with the acquisition of US-based Chem-Lab Products Inc., now known as KIK Pool Additives Inc.
About KIK Custom Products
With over $1.6 billion in annual sales and more than 3,600 employees worldwide (post acquisition), 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 now includes 16 integrated manufacturing facilities strategically located throughout North America and a plant in South Africa. KIK's product lines include bleach, household cleaners and sanitizers, pool and spa water treatment and pool specialty products, 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. KIK is a portfolio company of New York-based private equity firm CI Capital Partners.
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 $2.2 billion1 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.
12012 net sales of $2.2 billion reflect discontinued operations treatment for the sale of Chemtura's Antioxidants and Consumer Products businesses.
Some of the statements made in this press release may be considered forward looking statements about KIK's achievements, future results, goals, levels of activity, performance, and other future events. These forward-looking statements involve risks, uncertainties and other factors that may cause the results to differ materially from those anticipated in the forward-looking statements. These risks, uncertainties and other factors may be significant. As such, you should not place undue reliance on any forward-looking statements that are contained herein, nor does KIK assume any obligation to update the forward-looking statements to conform them to any changes in circumstances or new information.
SOURCE KIK Custom Products Inc.