Knowlton Development Corp., or KDC-One, has inked a deal to buy Shanghai Paristy Daily Chemical Co. Ltd., a China-based makeup formulator and manufacturer.
Terms of the deal were not disclosed. The transaction is expected to close in the first quarter of 2020.
In a statement, KDC-One said the deal was part of a strategy to build up manufacturing, formulation and packaging services in Asia. Shanghai Paristy is said to have expertise in powder, lip and face products for both the mass and prestige channels. The business has an R&D and innovation center in Taiwan, and a manufacturing base in mainland China.
The acquisition is KDC’s first in the region. Henry Cornell, founder and senior partner of KDC-One’s private equity backer Cornell Capital, said the deal would enhance the company’s “ability to serve the needs of our global prestige beauty clients and an increasingly diverse and global customer base.”
“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. He will become the company’s managing director under KDC ownership.
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KDC-One has spent the past several years building up through acquisitions. Most recently, in December, the group said it would merge with Santa Monica, Calif.-based HCT, which provides manufacturing, packaging, filling and logistics services. KDC also recently purchased Benchmark Cosmetic Laboratories Inc., in November, and Swallowfield in July.
Beauty manufacturing has become a hot spot for private equity players looking to do beauty deals, but not take risks on individual brands. In addition to KDC, there’s Bain-backed Maesa, which makes Flower Beauty, Kristin Ess hair, and a bunch of private-label beauty products. There’s also L Catterton-backed Intercos. Mana, a New York-based manufacturer, is said to have hired Guggenheim to explore deal options.
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