GHD has been acquired by Coty. Having just completed the $12.5bn purchase of Procter & Gamble’s specialist beauty business, Coty is back in the acquisition game. Through the transaction, Coty became the global No. 2 in hair color and styling products. The company continues to grow through deals, and Coty shares rose 1.6% in premarket trading.
GHD, which stands for “good hair day,” launched in 2001 with £15,000 in 2001 from Bradford, West Yorkshire, after three entrepreneurs—Martin Penny, Gary Douglas, and Robert Powls—bought the rights to a Korean-developed hair-straightening iron. The brand entered the US market about ten years ago and had global distribution expanding into high-end retail and e-commerce from its foundation in the professional channel.
“Not only do we expect GHD to strengthen our professional hair portfolio and enable Coty to provide even better hair solutions, but we also believe there is strong growth potential for GHD across several markets,” Coty Chief Executive Camillo Pane said.
- Coty will pay approximately $510m in cash funded with a combination of cash on hand and available debt facilities
- GHD was put up for sale in June by owner private equity firm Lion Capital, with bankers Rothschild overseeing an auction of the company
- The company generated $216.3 million in revenue in the fiscal year 2016
- Sales have grown over 30% over the past three years
- In 2013, private equity firm Lion Capital acquired GHD in a deal valued at about £300m
- Montagu Private Equity bought the company in 2007 for £160m
- GHD will become part of the Coty Professional Beauty division
- The brand will be managed as a stand-alone business under its current CEO, Anthony Davy, and management team
- Anthony will report to Sylvie Moreau, President of Coty Professional Beauty
- Lion Capital and GHD were advised by Rothschild & Co.
- Proskauer Rose LLP and Skadden Arps Slate Meagher & Flom LLP acted as legal counsel for Coty Inc
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