U.S. private equity firm CI Capital Partners has closed its previously-announced sale of KIK Custom Products, a maker of household and personal care products and a developer of pool and spa treatment products. The buyer was U.S. private equity firm Centerbridge Partners. No financial terms were disclosed; however, one source suggested a sale could value the business at more than US$1.5 billion, including debt. Morgan Stanley & Co LLC and Rothschild served as financial advisors to KIK on the transaction. Based in Concord, Ontario, KIK was acquired by CI Capital in 2007.
CI Capital Partners Completes Sale of KIK Custom Products
New York, NY – August 27, 2015 – CI Capital Partners, a New York-based private equity firm, announced today that it has completed the sale of its portfolio company, KIK Custom Products (“KIK” or the “Company”) to Centerbridge Partners. Terms of the transaction were not disclosed.
Under CI Capital’s ownership, through the execution of numerous internal growth initiatives and the completion of several add-on acquisitions, KIK doubled its revenue and diversified its business beyond household and personal care categories to pool and spa products. Today, the Company is a global leader in the development and marketing of pool and spa treatment products and one of North America’s largest independent manufacturers of household and personal care products.
“The completion of this transaction marks the conclusion of a tremendous partnership with CI Capital,” said Jeff Nodland, Chief Executive Officer of KIK. “CI Capital has supported us as we invested in the company’s organic growth, executed an M&A strategy and successfully expanded into new business lines. We look forward to continuing the Company’s growth trajectory with Centerbridge, and we will continue to provide the industry-leading service and expertise our customers have come to expect from us.”
Timothy Hall, Managing Director at CI Capital Partners and a director of KIK Custom Products, said, “Under our ownership, Jeff Nodland, CEO, and Ben Kaak, CFO, along with the entire KIK management team, worked tirelessly to transform KIK through strategic acquisitions and operational initiatives, creating a clear leader in the marketing and production of consumer packaged goods and pool and spa treatment products.”
Frederick J. Iseman, Chairman and CEO of CI Capital Partners and Chairman of KIK Custom Products, said, “Our partnership with the KIK management team resulted in a very successful investment for us, and we wish the KIK team and Centerbridge continued success.”
The Company was advised in the transaction by its financial advisors Morgan Stanley & Co. LLC and Rothschild and its legal advisor Paul, Weiss, Rifkind, Wharton & Garrison LLP.
Since 1993, KIK has successfully grown from a single-plant operator in retailer-branded (private label) bleach to the leading independent manufacturer in the household/personal care and over-the-counter categories and the global leader in pool and spa additives. In entering these segments, KIK capitalized on an opportunity to leverage its core manufacturing and marketing competencies to drive scale in previously fragmented industries. Subsequent to entering each market opportunity, KIK established leading positions through a combination of organic growth initiatives and strategic add-on acquisitions. For more information, 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 over 160 acquisitions representing approximately $7 billion in enterprise value. To learn more about CI Capital Partners, please visit www.cicapllc.com.
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