Following on from reports yesterday, Coty has confirmed that it has reached an agreement to acquire ghd, the British firm that makes high-end hairstyling appliances. The US-based beauty giant is paying approximately £420m in cash to buy ghd from Lion Capital, a private equity group.
Coty said that the addition of ghd’s “market-leading and high-performance” lines of hair straighteners, hairdryers, curlers and other hairstyling appliances will strengthen its worldwide position in the professional hair category. The company added that it aims to accelerate ghd’s strong track record of growth through its channel and category capabilities combined with ghd’s strong innovation pipeline, superior technology and robust technical expertise.
ghd, which stands for ‘Good Hair Day,’ generated ₤178m in revenues in fiscal year 2016. ghd is headquartered in London and has commercial operations in the UK, Australia, the, US, Germany, France, Spain, Italy and several other markets. The company has been expanding from its core salon channel into premium retail and e-commerce. ghd will become part of the Coty Professional Beauty division, where it will be managed as a standalone business led by its current CEO Anthony Davey and management team. Davey will report to Sylvie Moreau, President of Coty Professional Beauty.
Commenting on the news, Camillo Pane, Coty’s Chief Executive Officer, said: “We are pleased to bring ghd’s highly skilled management team and its employees into Coty as we continue to strengthen our core business through the addition of innovative market-leading brands and products. ghd has beautifully designed and superior performing products, and is the preferred choice for discerning professionals and consumers alike. 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.”
The transaction is subject to regulatory clearances but is expected to be completed by the end of the year.
The deal marks the second major deal for Coty this year, following its acquisition of Procter & Gamble’s speciality beauty business which made it the third-largest beauty company in the world, with estimated revenues of $9bn.