Transaction accelerates creation of leading global automotive solutions group
MONTREAL and LAWRENCEVILLE, Ga. , June 18, 2024 /PRNewswire/ — Recochem, a leader in automotive fluid solutions, and KIK Consumer Products (“KIK”), a leading pool, home and auto care consumer products manufacturer in North America, today announced that Recochem has acquired KIK's Auto Care business.
KIK's Auto Care business consists of Preston in North America and Holtz in the UK, which develops, manufactures and distributes antifreeze/coolants and other essential automotive fluids and automotive appearance products in North America and other major international markets.
For Recochem, the strategic and highly complementary combination of Recochem (Canada), Preston (USA) and Holtz (UK) will facilitate the creation of a global automotive solutions group with significant economies of scale and the opportunity to offer new automotive solutions and products to customers in all major markets.
Sean Davis, CEO of Recochem, said: “We are extremely excited about the opportunity to create a world-class, consumer-focused automotive group that can deliver best-in-class solutions to our customers. Recochem, Preston and Holtz are highly complementary businesses and the combined platform will enable us to offer our customers a broader range of products across multiple categories that have grown steadily over the long term. Today's transaction provides the enlarged business and the individual business units with significant opportunities to expand, develop and grow their relationships with key partners.”
For KIK, the sale of its Auto Care business comes at a logical time given the strength of its business and will enable it to focus on the exceptional growth prospects of its Home Care and Pool Care businesses.
KIK CEO Michael Sload said, “This transaction is a testament to the strong growth and momentum of our Auto Care business and we believe the future of the business is bright under Recochem's ownership. Following the completion of the sale, KIK will remain a highly focused, well-aligned consumer products company with exceptional growth opportunities in our Home Care and Pool Care businesses.”
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 on the transaction by financial advisor CG Sawaya Partners and legal advisors Weil, Gotshal & Manges LLP and Blake, Cassels & Graydon LLP.
For further information, please contact:
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On behalf of Recochem and CapVest: Ben Valdimarson |
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 the manufacturing, marketing and distribution of aftermarket transportation and household fluids.
The company's product portfolio spans branded, private label and bulk products and includes coolants, appearance products, windshield washer fluid, diesel exhaust fluid and a wide range of household liquids and industrial chemicals. The company serves consumer and industrial customers worldwide through 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 providing essential goods and services to transform their operations.
As an active and patient investor, CapVest has established a successful track record of delivering attractive returns by working closely with management teams to transform 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 grown from a single plant operator of retail branded (private label) bleach to a leading independent manufacturer of household products in North America and a global leader in pool and spa treatment and automotive products. In entering these segments, KIK leveraged its core manufacturing and marketing capabilities to capitalize on opportunities to gain scale in a fragmented industry. After entering each market opportunity, KIK transformed through a combination of organic growth initiatives and acquisitions, resulting in continued strong growth in all segments. For more information, visit www.kikcorp.com.
KIK is a portfolio company of Centerbridge Partners, LP, a private investment management firm that employs a flexible approach across investment sectors, including private equity, private credit and real estate, seeking to develop the most attractive investment opportunities for investors. The firm was founded in 2005 and has offices in New York and London with approximately $38 billion in capital under management as of December 31, 2023. 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.
Photo – https://mma.prnewswire.com/media/2441925/Holts.jpg
Photo – https://mma.prnewswire.com/media/2441926/Prestone.jpg
Source: Recochem, KIK Consumer Products
