Recochem acquires auto care business from KIK Consumer Products
Recochem, a leader in automotive liquid solutions, and KIK Consumer Products ("KIK"), a leading North American manufacturer of pool, household and auto care consumer products, today announced that Recochem has acquired KIK's Auto Care business.
KIK's Auto Care business comprises Prestone in North America and Holts in the UK, and develops, manufactures and markets antifreeze/coolant and other essential automotive fluids and car appearance products in North America and other key international markets. For Recochem, the strategic and highly complementary combination of Recochem (Canada), Prestone (US) and Holts (UK) will facilitate the creation of a global automotive solutions group with significant economies of scale and opportunities to bring new automotive solutions and products to customers across all its key markets.
Shawn Davies, CEO of Recochem, said: "We are very excited about the opportunity to create a world-class, consumer centric automotive group that can deliver the very best solutions for our customers.
“Recochem, Prestone and Holts are highly complementary businesses, and the combined platform will offer customers a wide range of products across multiple categories that are experiencing consistent long-term growth. Today's transaction will provide the enlarged business and individual business units with significant opportunities to expand, develop and broaden our relationships with our key partners."
For KIK, the sale of its Auto Care business comes at a logical time given the strength of that business and enables a focus on the exceptional growth prospects of its Household Care and Pool Care businesses. Michael Sload, CEO of KIK, said: "This transaction is a testament to the strong growth and momentum of our Auto Care business, and we see strong prospects for the business under Recochem's ownership.
“After the completion of the sale, KIK will continue as a highly focused and aligned consumer products company with our Household Care and Pool Care businesses offering exceptional growth opportunities." 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 in the transaction by its financial advisor CG Sawaya Partners and its legal advisors Weil, Gotshal & Manges LLP and Blake, Cassels & Graydon LLP.