The parent company of BioLab has a new owner. KIK Custom Products has been acquired by Centerbridge Partners.
The New York-based investment firm prevailed in an auction, buying the Concord, Ontario, Canada-based manufacturer from CI Capital Partners for a reported $1.6 billion.
The transaction will be financed through debt underwritten by BMO Capital Markets, according to a news release from Centerbridge. The deal is expected to close subject to customary approvals.
KIK entered the industry in 2011 by acquiring Ontario, Calif.-based Chem-Lab Products, better known as Kem-Tek. It made further inroads last year when it bought the consumer products division of Chemtura Corp., which is how it acquired the BioLab brand, for $300 million. It also entered into an agreement last year to produce a line of pool and spa products for powerhouse brand Clorox.
KIK does more than $1.8 billion in sales annually, according to reports. This latest transaction is expected to continue the company’s growth.
“This news follows a strong year for KIK and will help accelerate momentum,” said the manufacturer’s CEO, Jeff Nodland, in a statement. “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.”
BioLab is an industry heavyweight dating back to 1955. The Georgia company initially produced disinfectants and cleansing agents for chicken hatcheries before branching out into the pool industry with BioGuard. It is widely credited for creating a three-step approach to pool care. The chemical producer was sold to Swedish manufacturer Lonza in 1979, and then again to the Great Lakes Chemical Co. in 1996. Great Lakes merged with Crompton Corp. to form Philadelphia-based Chemtura in 2005. BioLab products are sold throughout North America, Europe, South Africa and Australia.
Its founder, Leon Bloom, passed away in June. He was 96.