Kingswood Capital Management Acquires PATCO Products, Formerly Corbion's Caravan Emulsifiers Division

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Apr 02, 2024, 10:26 ET

LOS ANGELES, April 2, 2024 /PRNewswire/ -- Kingswood Capital Management, LP (together with its affiliates, "Kingswood") announced today that it has acquired Corbion's emulsifiers business (formerly known as Caravan Emulsifiers), which, moving forward, will operate under the name PATCO Products, LLC ("PATCO" or the "Company"). PATCO is an industry-leading provider of emulsifiers for a diverse set of end markets, including food products, polymer additives, pet foods, personal care, and pharmaceuticals. Vice President of Emulsifiers at Corbion, John Miller, will continue to lead the Company as its Chief Executive Officer.

"We look forward to the partnership with Kingswood and the support they will provide as we transition to a standalone business. As an independent company, we will be even more focused and nimble in reacting to the product and service needs of our customers and will continue our longstanding heritage in developing and producing industry-leading emulsifiers. I am excited for all our employees as we embark on this next phase as a company," said John Miller, Chief Executive Officer at PATCO.

Headquartered in Lenexa, KS, PATCO manufactures emulsifiers at two US-based facilities for both food and non-food applications, with an extensive distribution footprint servicing customers primarily across North America. Throughout its nearly 70-year history, the Company has been focused on researching and innovating within emulsifiers and is committed to continue building upon its achievements to-date.

"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. This represents Kingswood's fourth corporate carve-out in the last twelve months, demonstrating our firm's differentiated ability to provide divestiture solutions for corporate parents across a range of industries," said Alex Wolf, Managing Partner at Kingswood.

"The unique and important benefits these products provide for manufacturers will allow emulsifiers to play a key role in meeting evolving needs in the global marketplace, both for food and non-food applications," added Andrew Kovach, Managing Director at Kingswood.

"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 Rigaud, Chief Executive Officer at Corbion.

Lazard is serving as financial advisor and Stinson LLP as legal counsel to Corbion for this transaction. For Kingswood, Kirkland & Ellis is serving as legal counsel and Configure Partners as debt advisor.

About PATCO Products, LLC:

PATCO Products, LLC provides a range of emulsifier solutions, including glycerides, lactylates, hydrates, esters, and processing aids to the Food, Polymer Additive, Personal Care, and other related industries. PATCO's products serve a multitude of markets, including bakery, beverages, confectionary products, dairy & non-dairy products, fats & oils, pet food & animal feed, pharmaceuticals & nutraceuticals, processed foods, and polymer additives. PATCO was founded in 1956 as a division of C.J. Patterson Company, with the goal of improving the consumer experience of baked goods. The Company's roots lie in its research and new product development abilities, as shown by the series of emulsifiers the Company has discovered over the decades. The Company continues to be the leader in emulsifier research and innovation within a variety of industries. The Company is headquartered in Lenexa, KS. For more information, please refer to the PATCO website at www.patcoproducts.com.

About Kingswood Capital Management, LP:

Kingswood Capital Management, LP is a private investment firm primarily focused on investing in businesses in transition. In addition to access to capital, Kingswood brings relevant industry relationships and a broad network of internal and external operating resources that can strengthen the businesses it partners with and enhance value. Kingswood has extensive experience with complex transactions, including carve-outs, where it provides tailored solutions that balance the objectives of all constituents. For more information, please refer to the Kingswood website at www.kingswood-capital.com.

SOURCE Kingswood Capital Management, LP