Only recently KDC began investing in color cosmetics. The company acquired Kolmar Lab Groups is mid-October 2015. At the time Nicholas Whitley, president and CEO of KDC, told the press, “we believe that this category has strong business fundamentals and significant growth prospects.”
And he’s not wrong. Market research firm Euromonitor expects that over the five years, ending 2020, the premium color cosmetics category will see $2bn in growth.
Also at that time, KDC acquired Cosmetic Technologies. This deal positioned the company squarely in the local, small batch, indie beauty space that is rising in market share. As Whitley remarked, “California is well known for its innovative products and its upscale, independent brands….With the acquisition of Cosmetic Technologies, we are able to expand our manufacturing capabilities to the West Coast and serve our clients there on a local basis….it allows us to manufacture smaller orders, starting at 5,000 units, for high-end products, while using our network of facilities to help these niche and independent West Coast brands grow into larger markets.”
And early in 2015, KDC bought New Jersey–based ChemAid, a maker of skin care, body care, hair care and bath products.
Now this month, KDC has announced the acquisition of Thibiant International, a California-based company specializing in personal care and skin care formulation and manufacturing. Thibaint is a full-service partner, offering its customers product development services, R&D, compliance services, and more. The company’s facility comprises more than 330,000 square feet and employs 285 people full-time, according to the most recent press release from KDC.
KDC is clearly making very strategic choices to buy companies that are uniquely positioned (with capabilities, clients, location, etc.) in growth areas of the cosmetics and personal care industry. “We are very confident that this acquisition will add considerable growth potential and enable us to establish a strong presence on the West Coast of the U.S.,” says Whitley of this latest deal.
This article was updated on 29-Nov-2016 to reflect the fact that KDC acquired Kolmar, Cosmetic Technologies, and ChemAid in 2015 rather than 2016, as previously reported.