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Kingwood's Strategic Investment Transforms Emulsifier Market

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Lauren Miller

April 2, 2024 - 14:26 pm

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Kingswood Capital Acquires Corbion's Emulsifier Business, Launches PATCO Products

LOS ANGELES, April 2, 2024 /PRNewswire/ -- Kingswood Capital Management, LP (alongside its affiliates, collectively recognized as "Kingswood") has announced the recent acquisition of Corbion's renowned emulsifier segment, formerly referred to as Caravan Emulsifiers. The business, henceforth known as PATCO Products, LLC ("PATCO" or "the Company"), is celebrated as a frontrunner in the emulsifier industry, catering to a wide array of market segments that span food production, polymer additives, pet nourishment, personal grooming, and pharmaceuticals. John Miller, who previously administered the emulsifier division at Corbion, will take the helm of PATCO as the Chief Executive Officer.

"We eagerly anticipate our collaboration with Kingswood and the reinforcement they will bring as we evolve into an independent entity. This autonomy will enable us to more effectively concentrate our efforts and promptly address our consumer base's product and service requirements. We are proud of our historical achievements in crafting premier emulsifiers, a tradition we intend to perpetuate. I am buoyed by the prospects that await our dedicated staff as we step into this new chapter," expressed John Miller, PATCO's Chief Executive Officer.

Stationed in Lenexa, Kansas, PATCO's manufacturing prowess is evidenced in its dual United States-based facilities, which produce emulsifiers for both food and non-food applications. PATCO prides itself on an vast distribution network primarily covering the North American continent. Over almost seven decades, the Company has remained intent on spearheading research and innovation within the emulsifier domain and pledges to continuously elevate its historical accomplishments.

"Kingswood is enthused by the opportunity to advance this elite Emulsifiers operation and carry forward its impressive legacy through our commitment to superior service. This venture signifies Kingswood's fourth corporate carve-out within a year, underscoring our firm's unique expertise in devising divestiture strategies for various industries," commented Alex Wolf, Managing Partner at Kingswood.

"The distinctive and essential advantages offered by these products are primed to play a pivotal role in fulfilling the emergent requirements of the global marketplace. This is true for both food-centric and broader non-food applications," added Andrew Kovach, Managing Director at Kingswood.

Corbion's CEO Olivier Rigaud conveyed his confidence regarding the future of the emulsifier business under Kingswood's guidance: "We firmly believe that the emulsifier segment will thrive with the robust backing of Kingswood. Our gratitude goes out to our colleagues who have painstakingly nurtured our emulsifier operations over many years, and we look forward to witnessing their continued success."

Lazard is contributing its expertise as the financial advisor, accompanied by Stinson LLP acting as legal counsel to Corbion for this significant transaction. Kingswood, on the other hand, has engaged the professional services of Kirkland & Ellis as legal counsel, with Configure Partners serving as the debt advisor.

Introducing PATCO Products, LLC

PATCO Products, LLC, is a purveyor of a comprehensive spectrum of emulsifier solutions. Its portfolio includes glycerides, lactylates, hydrates, esters, and processing aids, which cater to sectors such as Food, Polymer Additive, Personal Care, among others. PATCO's offerings are integral to a variety of markets, encompassing bakeries, beverage manufacturing, confectionery goods, dairy and vegan products, fats and oils, pet nutrition and animal feed, pharmaceuticals and nutraceuticals, processed foodstuffs, along with polymer additives. Inaugurated in 1956 as a division of the C.J. Patterson Company, PATCO's mission has been to revolutionize consumer experiences associated with baked commodities. The organization is grounded in its relentless pursuit of research and novel product development, as evidenced by a series of emulsifiers curated over many decades. PATCO's reputation as a trailblazer in emulsifier research and innovation continues to burgeon across myriad industries. With its headquarters in Lenexa, Kansas, PATCO invites interested parties to glean more insights through their website, accessible at www.patcoproducts.com.

About Kingswood Capital Management, LP

Kingswood Capital Management, LP is a dedicated private investment firm that specializes in orchestrating investments in transitional businesses. Kingswood extends beyond mere capital provisions by offering pertinent industry connections and an expansive network of both internal and external operating resources to reinforce its partner organizations and amplify value. The firm has garnered a wealth of experience in orchestrating intricate transactions, with a spotlight on carve-outs, where it conceives bespoke solutions that harmonize the ambitions of all involved stakeholders. For a further understanding of Kingswood's undertakings and investments, the firm encourages perusal of its website at www.kingswood-capital.com.

Kingswood's most recent pursue reaffirms their strategy in tackling complex transactions and bolstering businesses through periods of transition. As PATCO prepares to embark upon its new journey, industry observers are closely monitoring how Kingswood’s influence might spur innovation and growth within the emulsifier market.

Indeed, as consumer preferences continue to shift and environmental considerations become ever more pressing, the role of emulsifiers in creating sustainable and high-quality food and non-food products is highlighted. PATCO, under the guidance of Kingswood and the experienced leadership of John Miller, seems well-poised to address these market dynamics.

This acquisition is an illustrative example of Kingswood's mission to invest in companies that are poised for transformation. By focusing on industries in transition, the investment firm leverages its strategic expertise to identify and nurture potential areas of growth.

The discerning factor of PATCO's future lies in its capacity to innovate within a competitive landscape. In an era where the demand for cleaner labels and sustainable manufacturing processes is escalating, the Company's heritage of pioneering research and development in the emulsifier sector stands as a solid foundation for future advancements. With Kingswood's backing, PATCO appears ready to ascend to new heights and expand its influence both domestically and internationally.

As John Miller leads PATCO forward, the objective is clear: to persist in delivering the unmatched quality that has long been associated with their emulsifiers while maximizing opportunities brought about by the recent acquisition. This approach includes enhancing service capabilities, investing in research and development, and exploring new markets that could benefit from PATCO's specialized emulsification solutions.

In conclusion, Kingswood's acquisition of Corbion's emulsifier business and the subsequent formation of PATCO Products, LLC herald a new epoch for the emulsifier industry. One marked by innovation, enhanced services, and an even more robust product offering that meets the modern needs of a diverse array of industries. As PATCO sets sail under its new identity and Kingswood's stewardship, the market looks forward with anticipation to the advancements that will no doubt materialize from this synergy.

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