New York-based private equity firm Centerbridge Partners is in talks to buy US-based household and personal care products manufacturer Kik Custom Products in an acquisition rumoured to be worth US$1.6bn.
Founded in 1993, Kik is a contract manufacturer which supplies consumer goods products such as sunscreen, bleach and pool sanitisers to leading global companies such as Clorox.
Kik, is currently owned by private-equity firm CI Capital Partners LLC, which acquired the company in 2007.
The takeover by Centerbridge Partners, as reported in the Wall Street Journal, is expected to be completed this week.
“This news follows a strong year for KIK and will help accelerate momentum,” said Jeff Nodland, Chief Executive Officer of KIK. “With the successful completion of this transaction, KIK will be uniquely positioned to continue on its growth trajectory. Centerbridge has a proven track record of driving long-term sustainable value creation, and we look forward to building on our successes with our new investors. We are a trusted supplier to our customers and will continue to provide the industry-leading service and expertise they have come to expect from us.”
Steve Silver, Senior Managing Director of Centerbridge, said, “Having followed KIK’s business for nearly seven years, we have great confidence we are supporting a leader in multiple categories with a strong North American footprint. KIK is well positioned for continued expansion through both organic growth and strategic acquisitions. We look forward to supporting KIK and its management team through its next phase of growth and development.”