KIK Custom Products seeks to sell itself for more than $1.5 bn

KIK Custom Products Inc, Canadian household cleaning and personal care contract manufacturer, is seeking to sell itself in a deal that could value it at more than $1.5 billion including debt, Reuters yesterday reported, citing people familiar with the matter.

KIK Custom Products, owned by private equity firm CI Capital Partners, is working with Morgan Stanley on a sale process that is expected to start early next year, the report said.

CI Capital Partners had acquired the assets of KIK's parent company in 2007 for more than $700 million.

Ontario-based KIK Custom Products manufactures household cleaning and personal care products for some of the world's largest retailers and brand owners.

It makes more than two billion units representing thousands of different consumer products for North American clients.

The products include shampoos, soaps, body lotions, and sunscreens, air fresheners, household bleach, cleaners, and additives for swimming pools and spas, as well as a line of industrial cleaning and sanitation products for hospitals, schools, health clubs, restaurants and other businesses.

Apart from contract manufacturing, the company manufactures and markets a number of its own brands for small to medium-sized retailers, institutions and consumers.

Its brands include Top Job, Pure Bright, Arctic White, Arctic Brigh, Blanco Bleach, and Hi-lex.

KIK Custom Products has over 3,000 employees and operates 17 manufacturing facilities located in 14 different sites throughout Canada and the US.