Transaction facilitates creation of leading global automotive solutions group
MONTREAL, and LAWRENCEVILLE, Ga., June 18, 2024 /PRNewswire/ -- Recochem, a leader in automotive liquid solutions, and KIK Consumer Products ("KIK"), a leading North American manufacturer of pool, household and auto care consumer products, today announced that Recochem has acquired KIK's Auto Care business.
KIK's Auto Care business comprises Prestone in North America and Holts in the UK, and develops, manufactures and markets antifreeze/coolant and other essential automotive fluids and car appearance products in North America and other key international markets.
For Recochem, the strategic and highly complementary combination of Recochem (Canada), Prestone (US) and Holts (UK) will facilitate the creation of a global automotive solutions group with significant economies of scale and opportunities to bring new automotive solutions and products to customers across all its key markets.
Shawn Davies, CEO of Recochem, said: "We are very excited about the opportunity to create a world-class, consumer centric automotive group that can deliver the very best solutions for our customers. Recochem, Prestone and Holts are highly complementary businesses, and the combined platform will offer customers a wide range of products across multiple categories that are experiencing consistent long-term growth. Today's transaction will provide the enlarged business and individual business units with significant opportunities to expand, develop and broaden our relationships with our key partners."
For KIK, the sale of its Auto Care business comes at a logical time given the strength of that business and enables a focus on the exceptional growth prospects of its Household Care and Pool Care businesses.
Michael Sload, CEO of KIK, said: "This transaction is a testament to the strong growth and momentum of our Auto Care business, and we see strong prospects for the business under Recochem's ownership. After the completion of the sale, KIK will continue as a highly focused and aligned consumer products company with our Household Care and Pool Care businesses offering exceptional growth opportunities."
Terms of the transaction were not disclosed.
Recochem was advised by Harris Williams (Financial Advisor) and legal advisors Wilkie Farr & Gallagher LLP, Arnold & Porter LLP, and Kirkland & Ellis LLP. KIK was advised in the transaction by its financial advisor CG Sawaya Partners and its legal advisors Weil, Gotshal & Manges LLP and Blake, Cassels & Graydon LLP.
For further information please contact:
On behalf of Recochem and CapVest: Ben Valdimarsson | On behalf of KIK and Centerbridge Partners: Jeremy Fielding/Daniel Hoadley |
About Recochem
Founded in 1951 and headquartered in Montreal, Quebec, Canada, Recochem is a global leader in manufacturing, marketing, and distributing aftermarket transportation and household fluids.
The Company's product portfolio spans branded, private label, and bulk offerings and includes coolant, appearance products, windshield wash fluid, diesel exhaust fluid, and a broad range of household fluids and industrial chemicals. The Company serves consumers and industrial customers worldwide through its operations in North America, Europe, Australia, and Asia-Pacific.
In November 2023, Recochem was acquired by CapVest Partners LLP ("CapVest") a leading international private equity investor that partners with ambitious companies supplying essential goods and services to transform their businesses.
As an active and patient investor, CapVest has established a strong record of success in delivering attractive returns by working closely with management in transforming the size and scale of its portfolio companies through a combination of organic and acquisition led growth.
About KIK Consumer Products
Since 1993, KIK has successfully grown from a single-plant operator in retailer-branded (private label) bleach to the leading North American independent manufacturer in household products and a global leader in pool and spa treatment and automotive products. In entering these segments, KIK capitalized on an opportunity to leverage its core manufacturing and marketing competencies to drive scale in fragmented industries. Subsequent to entering each market opportunity, KIK transformed it through a combination of organic growth initiatives and acquisitions and has continued to experience strong growth in all categories. For more information, visit www.kikcorp.com
KIK is a portfolio company of Centerbridge Partners, L.P., a private investment management firm employing a flexible approach across investment disciplines - Private Equity, Private Credit and Real Estate - in an effort to develop the most attractive opportunities for our investors. The Firm was founded in 2005 and, as of December 31, 2023, has approximately $38 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies. For more information, please visit http://www.centerbridge.com|LinkedIn
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