BREAKING NEWS! Coty Agrees To Acquire ghd
October 17, 2016 – Coty announced today that it has reached a definitive agreement to acquire ghd, a premium brand in high-end hairstyling appliances, from Lion Capital LLP for approximately $510 million. The transaction will be funded with a combination of cash in hand and available debt facilities. Upon closing, the acquisition is expected to be immediately accretive to Coty’s earnings.
The addition of ghd’s market-leading and high-performance lines of hair straighteners, hairdryers, curlers and other hairstyling appliances is expected to further strengthen Coty’s worldwide leading position in the professional hair category. ghd products represent the top of the range in its category, attracting strong loyalty with both professionals and consumers. ghd’s products are known for unsurpassed quality, beautiful design and excellent performance and will enable Coty to offer salon partners and their clients an enhanced and more premium range of hair solutions. Coty also 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 £178 million in revenues in fiscal year 2016. ghd is headquartered in London and has commercial operations in the United Kingdom, Australia, the United States, 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 the management team. Anthony will report to Sylvie Moreau, President of Coty Professional Beauty.
“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,” said Camillo Pane, Coty Chief Executive Officer. “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.”
“This move underlines Coty’s commitment to continually elevate professional beauty and serve salon professionals and their clients with standard-setting products and services,” added Sylvie. “I am delighted to see these three iconic salon brands—Wella, OPI and ghd—come together under the Coty Professional Beauty division.“
“This is a fantastic opportunity for the ghd brand and its team. The combined expertise and capabilities of ghd and Coty will be a powerful force of innovation in the hair business,” shared Anthony. “Together, we will further excite and delight our existing salon partners, clients and consumers and attract many new ones across the world.”
The transaction is subject to regulatory clearances and other customary closing conditions and is expected to close by the end of calendar year 2016.