FirePower Capital Orchestrates Sale of Ontario-based CSR Cosmetic Solutions to Korean Giant Kolmar Korea Co.
FirePower Financial Corporation (“FirePower”), Canada’s entrepreneurial investment bank and investor, announces the sale of its client, CSR Cosmetics Solutions (“CSR”), one of the largest contract manufacturers of cosmetics and personal care products in North America based out of Barrie, Ontario, to Kolmar Korea Co. (“Kolmar”), Korea’s largest pharmaceutical and cosmetics contract manufacturer. FirePower acted as the exclusive advisor to CSR. The deal closed in January of this year and shows FirePower’s cross-border reach.
Steve Blanchet, President & CEO of CSR, had operated and grown the business for over 15 years and was ready to transition into a well-deserved retirement. “Ultimately, I wanted to leave CSR into the hands of capable new ownership, who would continue to treat our Barrie employees well and to develop new markets for our innovative capabilities,” said Blanchet, “but I also recognized that such a buyer could be anywhere. When assessing which investment bank to partner with on the sale of CSR, a global reach was a critical selection criteria.”
After meeting with the FirePower team, Blanchet recalls “It became evident that FirePower brought cutting-edge deal technology and a worldwide network of buyers to each of its mandates. I gave them the mandate with full trust that they’d see this one cross the finish line.” Once in market, FirePower approached 102 potential buyers, both strategic and financial in nature, and spanning the globe. FirePower initiated conversations and created an auction-like environment that generated 8 offers after three months of negotiations. After selecting the preferred buyer, Kolmar, a Korean multi-national seeking a foothold in North America, FirePower guided CSR through due diligence, definitive agreement negotiations, and a successful closing.
“We are proud to have found for CSR a strong strategic partner like Kolmar,” stated Ilan Jacobson, Founding Partner and CEO of FirePower, “and facilitated a win-win deal across some pretty distant borders. The added complexity proved worthwhile for CSR.”
FirePower advises and invests in Canada’s entrepreneurs, helping them complete mission-critical transactions, such as acquiring a competitor, selling to a strategic buyer, or financing their growth with our own or our partners’ capital. Our mission is to be the first resource business owners think of in the most important of times. We get it: we too are entrepreneurs, reimagining the way deals get done in Canada since 2012. For more information visit: www.firepowercapital.com
One of three equal shareholders of Corrosion Service, an infrastructure services company, approached FirePower, seeking to buy out the other two. Although this was a highly sensitive situation, we were able to raise the debt financing necessary for a successful close.