Quebec-based Knowlton Development Corp. (KDC/ONE) is acquiring the manufacturing business and associated assets of aerosol filling company Swallowfield plc for approximately £35 million ($57 million). The transaction, which is expected to close in August 2019, is subject to the approval of shareholders of Swallowfield plc, Wellington, UK.
“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.
Swallowfield’s manufacturing business has 560 employees and operates across three main facilities in Europe (two in the UK and one in Czech Republic), as well as a sourcing office in China and sales offices in Paris and New York.
“We believe that by joining a larger, focused entity, our Manufacturing business will move forward with a clearer vision for the future while protecting the value of the business,” said Brendan Hynes, Chairman of Swallowfield. “We’re excited the team will have access to world-class resources and a broader platform to continue to expand product lines and accelerate growth.”
“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,” said Matthew Gazzard, CFO of Swallowfield.
Following the transaction, Swallowfield plc will retain the owned brands division under the ownership of the PLC and will now be based in Teddington, UK. The group is expected to change its name to Brand Architekts Group plc. The entire manufacturing business and associated assets will be wholly owned by KDC/ONE and operate as KDC/ONE Swallowfield. At closing, all employees within the manufacturing business will transfer to KDC/ONE.
Swallowfield’s Gazzard will become President of KDC/ONE Swallowfield; Jane Fletcher will be named KDC/ONE Swallowfield’s Sales & Marketing Director. Tim Perman will remain CEO of Swallowfield’s Brand Business.
KPMG is financial advisor to KDC/ONE; Weil, Gotshal & Manges is legal advisor. Baylor Klein is financial advisor to Swallowfield plc and Ashfords LLP is acting as legal advisor.