Knowlton Development Corporation has agreed to acquire China-based Shanghai Paristy Daily Chemical Co. Ltd., a maker of color cosmetic products. No financial terms were disclosed. The deal is expected to close in the first quarter of this year. KDC/ONE is backed by Cornell Capital, Caisse de dépôt et placement du Québec, Investissement Québec and HarbourVest Partners.
LONGUEUIL, QC – January 22, 2020 – Knowlton Development Corporation (“KDC/ONE” or the “Company”), a global leader in custom formulation and manufacturing solutions for beauty, personal care and household brands, today announced it has entered into a binding agreement to acquire Shanghai Paristy Daily Chemical Co., Ltd. (“Paristy”), a leading custom formulator and manufacturer of color cosmetic products, based in Shanghai, China. Financial terms of the transaction were not disclosed.
This strategic acquisition, which is expected to close in the first quarter of 2020, is the Company’s first in Asia, and further underscores KDC/ONE’s commitment to providing vertically integrated custom formulation and innovative manufacturing and packaging solutions to its customers in Asia and brand partners around the world.
Established in 2002, KDC/ONE has grown organically and through acquisitions to become a leading custom formulator and manufacturer. With 16 state-of-the art facilities in North America, Europe and Asia, KDC/ONE offers high-touch innovation, operational excellence and speed to market to well-known and emerging brands. Backed by Cornell Capital, which acquired KDC/ONE in December 2018 together with Caisse de dépôt et placement du Québec, Investissement Québec and HarbourVest Partners, KDC/ONE has nearly doubled the size of the Company over the past year, adding new technologies and expanding globally across North America, Asia and Europe, and successfully integrating three acquisitions. Most recently, KDC/ONE announced its agreement to merge with HCT Group, creating an innovative, end-to-end solutions provider for customers ranging from Fortune 500 companies to indie, emerging and prestige brands.
With unmatched expertise in powder, lip, face and liquid cosmetic products, and a strong legacy of serving emerging prestige and mass market beauty brands dating back to the 1960s, Paristy has become a trusted partner to leading brands in North America and Europe, in addition to the local Chinese market. Led by Jerome Shen, Angel Luo and a dynamic team of product development and manufacturing professionals, the Company’s global footprint is complemented by its reputation for quality and service. Paristy will operate two best in class facilities, including an innovative, state-of-the art R&D and innovation center in Taiwan, and a manufacturing base in mainland China.
“We are pleased to welcome Paristy into the KDC/ONE family as our first wholly-owned Asia-Pacific manufacturing hub, enhancing our ability to serve the needs of our global Prestige Beauty clients and an increasingly diverse and global customer base,” said Henry Cornell, Founder and Senior Partner of Cornell Capital. “With more than 50 years of history in Asia and with a shared commitment to bringing cutting edge innovation and high-quality manufacturing capabilities to its customers, Paristy is the ideal partner with which to expand KDC/ONE’s operational footprint in China.”
“KDC/ONE’s track record of innovation and its dedication to delivering value added services to brands has set it apart in North America and Europe, and we look forward to the opportunity to play a key role in the expansion and growth of its presence in the Asia market,” said Jerome Shen, President of Paristy who will continue as Managing Director of Paristy under the KDC/ONE leadership. “We view this transaction as a positive for our team as we join the KDC/ONE group, and for our customers, who will benefit greatly from the broader platform this creates for our current technologies and manufacturing capabilities.”
“KDC/ONE is excited by all of the new possibilities that this combination will bring the Company. Paristy has proven capabilities in the formulation and manufacture of both pressed and wet powder, as well as other innovative color cosmetic products including concealer, primer and foundation,” said Nicholas Whitley, President and CEO of KDC/ONE. “The addition of Paristy to KDC/ONE reaffirms our commitment to providing our solutions to our loyal customers in Asia and brand partners worldwide and we look forward to working closely with Jerome and his impressive team.”
“This is an exciting milestone for KDC/ONE as the Company establishes itself in Asia,” said Joyce I-Yin Hsu, Partner and Head of Asia for Cornell Capital. “We continue to see significant opportunity in the region and are confident that this acquisition will further enhance KDC/ONE’s platform for customers around the world. I am proud of our team in Asia, who has been instrumental in building the relationship between Paristy and KDC/ONE, and look forward to all that is ahead for this fast-growing and innovative platform.”
KDC/ONE is a leading provider of manufacturing and packaging solutions for the beauty, personal care and household sectors. Established in 2002, KDC/ONE is headquartered in Longueuil, Québec and employs over 5,000 employees across 16 state-of-the-art facilities in North America, Europe and Asia. KDC/ONE also operates two state-of-the-art innovation and R&D centers. The business delivers high-touch innovation, operational excellence and speed to market to a wide range of prestige and emerging brands. Over the past four years, KDC/ONE has experienced rapid growth through the successful completion of eight notable acquisitions. Most recently, KDC/ONE announced its agreement to merge with HCT Group, a leading provider of full-service manufacturing solutions for cosmetic brands. For more information, visit www.kdc-one.com.
Paristy is a leading custom formulator and manufacturer of color cosmetic products for established and emerging prestige and mass market beauty brands. With a history that can be traced back to 1968 in Taiwan, Paristy has operated its Shanghai manufacturing base since 1993.
About Cornell Capital
Cornell Capital LLC is a U.S.-based private investment firm with $3.0 billion of AUM and offices in New York and Hong Kong. Partnering with strong, entrepreneurial management teams, the firm takes a value-oriented approach to investing across the consumer, financial and industrial sectors. Founder and Senior Partner Henry Cornell, who served as the Vice Chairman of Goldman Sachs’ Merchant Banking Division prior to founding Cornell Capital in 2013, leads a highly-seasoned senior leadership team with decades of shared investing experience. For more information, visit www.cornellcapllc.com.
About Caisse de dépôt et placement du Québec
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2019, it held CAD $326.7 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
About Investissement Québec
Investissement Québec’s mission is to foster the growth of investment in Québec, thereby contributing to economic development and job creation in every region. The Corporation offers businesses a full range of financial solutions, including loans, loan guarantees and equity investments, to support them at all stages of their development. It is also responsible for administering tax measures and prospecting for foreign investment.
About HarbourVest Partners
HarbourVest is an independent, global private markets investment specialist with 36 years of experience and more than $58 billion in assets under management, as of March 31, 2019. The Firm’s powerful global platform offers clients investment opportunities through primary fund investments, secondary investments, and direct co-investments in commingled funds or separately managed accounts. Partnering with HarbourVest, clients have access to customized solutions, longstanding relationships, actionable insights, and proven results.