US – Kingswood Capital Management LP, a private investment firm, has successfully completed the acquisition of Corbion’s emulsifier business for a cash purchase price of US$362 million.  

As part of the acquisition, the business will be renamed as Patco. This move marks Kingswood’s strategic expansion into the emulsifier market and reinforces its commitment to driving growth in this sector. 

The acquisition comprises two manufacturing plants located in the United States, reflecting Kingswood’s focus on enhancing its operational capabilities and market presence.  

The emulsifier business caters to customers in both the food and non-food sectors, primarily across North America. 

Commenting on the transaction, Olivier Rigaud, CEO of Corbion, expressed confidence in Kingswood’s ability to steward the emulsifier business effectively.  

“We are confident that the emulsifier business will be in good hands under Kingswood’s stewardship and will receive strong support from their new owners. I want to thank our colleagues who have worked hard to develop our emulsifier business for many years, and we wish them great success in the years ahead,” said Olivier. 

Headquartered in Lenexa, KS, Patco operates two manufacturing facilities in the US, serving customers in various industries including food, polymer additives, pet food, personal care, and pharmaceuticals.  

John Miller will continue to lead the company as CEO, ensuring continuity and stability during the transition period. 

Alex Wolf, Managing Partner at Kingswood, expressed enthusiasm about the acquisition, emphasizing the company’s commitment to supporting Patco’s growth and innovation.  

“Kingswood is excited to take this world-class Emulsifiers business forward and build on its tremendous heritage by continuing to provide exceptional service. We are delighted to partner with Corbion to create the largest standalone pure-play emulsifiers business in North America,” Alex commented. 

The acquisition, initially announced in January, aligns with Corbion’s strategic focus on fermentation-based technologies. With the divestment of the emulsifier business, Corbion aims to streamline its operations and strengthen its position in key growth areas. 

In 2023, Corbion recorded a 1.2 percent organic increase in sales to €1,443.8 million (US$1,567.2M) with an operating profit of €117.2 million (US$127.22M), representing a 20.8 percent organic increase. 

Olivier said, “We have reported organic sales growth and double-digit organic growth in Adjusted EBITDA and Operating Profit, whilst facing a challenging geopolitical and macro-economic environment. 

We delivered a higher than anticipated positive free cash flow for the year due to our focus on operational efficiencies, optimizing working capital and capex discipline.” 

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