Frontenac, the Chicago private equity firm focused on lower-middle-market, family-held and owner-operated businesses, completed the recapitalization of Liquid Technologies, the Chino, California, contract formulator and producer of personal-care products like shampoo and skin-care cream. Terms weren’t disclosed. Ron Kuehl, managing director at Frontenac, in a statement called Liquid Technologies’ growth trajectory “impressive” and said the company would pursue strategic and complementary acquisitions. As part of the deal, Jay Kline, whose background includes executive tenures at Kennametal and BASF, was named chief executive of Liquid Technologies.
Frontenac Completes Recapitalization of Liquid Technologies
Chicago, IL – Frontenac, a leading private equity firm focused on investing in lower middle market, family-held or owner-operated businesses, has completed a recapitalization of Liquid Technologies, a contract formulator and contract manufacturer of personal care products. Financial terms of the private transaction were not disclosed.
Headquartered in Chino, California, Liquid Technologies is a contract formulator and contract manufacturer of personal care products, providing full service capabilities including formulation, development, blend manufacturing, filling and packaging. Liquid Technologies offers hair care products such as shampoos, conditioners, styling products and aerosols, in addition to skin care products such as creams, lotions and serums. The company serves both custom formulation and private label customers ranging from professional salons to established brands.
The investment is the result of Frontenac’s sourcing efforts in the personal care contract manufacturing sector. Neal Sahney, a Vice President at Frontenac said: “We are excited to make a new platform investment in an attractive, recession resistant market segment. We believe strong industry fundamentals such as consumers’ desire for premium and custom products and favorable demographic trends toward health and beauty will continue to drive demand for years to come.”
“Liquid Technologies has a variety of competitive advantages including technical and formulation capabilities as well as a customer and service centric culture,” said Ron Kuehl, Managing Director at Frontenac. “We look forward to supporting Liquid Technologies as it continues its impressive organic growth trajectory and as it begins its pursuit of strategic and complementary acquisitions.”
Frontenac is partnering with personal care and contract manufacturing industry veteran Jay Kline, who became Chief Executive Officer of the business as part of the transaction. Mr. Kline, a former President at Kennametal, Tekni-Plex and BASF, stated: “Frontenac brought a point of view on the industry and a solutions-oriented mindset that resonated with the owners and enabled this transaction. I’m excited to partner with Frontenac and a strong incumbent management team to take the business to the next level.”