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Law firm Ashfords LLP has advised the shareholders of leading personal care and beauty product maker, Swallowfield, on the sale of its manufacturing business to Canadian group, Knowlton Development Corporation (KDC), in a deal worth £35m.
With over 140 years of experience delivering world-class products, Swallowfield is an established leader in the personal care and beauty arena. The company’s manufacturing business focuses on the development, formulation, and supply of products for customers which include many of the world's leading brands.
KDC/ONE is the largest North American custom formulator and manufacturer serving the prestige beauty, personal care and household sectors. Formed in 2002, the business delivers high-touch innovation, operational excellence and speed to market to well-known and emerging brands. KDC/ONE has experienced rapid growth over the past four years, through the successful completion of eight significant acquisitions, most recently Aromair Fine Fragrance, Northern Labs and ALKOS Group.
The proposed disposal will support Swallowfield’s future growth brands and could maximise the future value of the group.
On completion of the transaction group finance director, Matthew Gazzard, and group sales and marketing director, Jane Fletcher, will transfer to the manufacturing business.
The transaction is expected to close in August 2019 and is subject to the approval of the shareholders of Swallowfield plc.
Following the transaction, Swallowfield plc will retain the owned brands division under the ownership of the PLC and will be located in Teddington. It is expected that the group will change its name to Brand Architekts Group plc.
The Ashfords’ team advising Swallowfield was led by Partner in Ashfords’ Corporate Team and Head of Client Services, Louise Workman, with assistance from Emma Clayton, Angus Bauer, Andrew MacMillan-Scott, Amelia Newman, Jonathan Hyde, Su Apps, Jack Baumgardt and Stuart Fleet.