Lion Capital to sell ghd to Coty for £420m

Coty has reached an agreement to acquire hairstyling appliance brand ghd from Lion Capital for around £420m.

This deal will be funded with a mix of cash-on-hand and available debt facilities.

The addition of ghd’s lines of hair straighteners, hairdryers, curlers, and other hairstyling appliances will strengthen Coty’s position in the professional hair category. ghd’s products will enable Coty to offer salon partners and clients a premium range of hair solutions.

ghd posted £178m in revenues in fiscal year 2016. It is headquartered in London and has commercial operations in the UK, Australia, the US, Germany, France, Spain, Italy, and several other markets.

The firm has been expanding from its core salon channel into premium retail and e-commerce. It will become part of Coty’s professional beauty division, where it will be managed as a standalone business led by its current CEO Anthony Davey and management team. Anthony Davey will report to Coty Professional Beauty president Sylvie Moreau.

Coty’s CEO Camillo Pane 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.”

Lion Capital partner Lyndon Lea said: “Over the three years of our ownership, ghd grew worldwide sales by 30% through a strong pipeline of innovative new products, which deepened the brand’s leadership in its core markets and supported its successful entry into new hairstyling categories.

“Anthony Davey and his management team have also done an excellent job of expanding the brand internationally while meaningfully strengthening ghd’s multichannel distribution capabilities.

“We are pleased to be selling ghd to Coty, a global leader in the beauty category, where it can take its rightful place among Coty’s unique family of beauty brands.”

The transaction is expected to be completed by the end of this year.