Private equity firm Lion Capital acquires hair care brand ghd for £300m

UK-based private equity firm Lion Capital announced that it has acquired premium hair care products brand ghd from another private equity firm Montagu for approximately £300m , while the terms and conditions were undisclosed.

Headquartered in Leeds, ghd offers hair styling appliances including straighteners, hair dryers, brushes and styling products.

Montagu acquired ghd in 2007 for £160m and focused on driving growth at the company through introduction into new markets by investing in new product R&D.

Under Montagu’s ownership, ghd’s profits have more than doubled to reach £32m on revenues in excess of £150m.

Montagu director Private Equity Simon Pooler said the firm’s sale of ghd to Lion marks the completion of another successful investment and it is happy to have partnered with the company over the past six years.

“We were originally attracted by the strength of the ghd brand and its remarkable customer loyalty. We also saw excellent potential to continue its growth in international markets and great opportunity to develop its new product range and sales channels. ghd is now a truly global market leader, with an enhanced ability to innovate and grow,” Pooler added.

“This is a good illustration of our strategy to invest in high quality companies with potential to benefit significantly from partnering with Montagu”.

Lion partner Lyndon Lea added: “Since its very early days, ghd has proved itself to be an iconic
“We look forward to accelerating ghd’s development in close partnership with Lion Capital, with whom we share a common vision and passion for growth.”

The transaction took place with Ernst & Young serving as advisor to the Montagu and ghd, while Rothschild. Financing served as the advisor to Lion Capital.