Knowlton Development plans $300 million term loan for HCT purchase

By Sara Rosenberg

New York, Dec. 17 – Knowlton Development Corp. (KDC/ONE) has received a commitment for a fungible $300 million incremental first-lien term loan to help fund its acquisition of HCT Group, according to a market source.

UBS Investment Bank is the left lead arranger on the deal. Jefferies LLC is a joint lead arranger.

Other funds for the transaction will come from new equity from Knowlton Development’s sponsor, Cornell Capital, as well as reinvestment equity from the founder and existing management of HCT.

The transaction will be deleveraging, the source added.

Closing is expected early in the first quarter of 2020, subject to customary conditions.

Knowlton Development is a Longueuil, Quebec-based manufacturer and custom formulator of color cosmetics, skincare, haircare, bath & body, fragrance, deodorant, home, health, industrial and auto care products. HCT is a Santa Monica, Calif.-based designer, engineer and manufacturer of packaging solutions for global beauty brands.

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