Coty Inc. (COTY.N) announced on 17th Oct. that it would buy ghd(Good Hair Day), a high-end hairstyling appliances brand, from private equity firm Lion Capital LLP for approximately 420 million pounds ($522 million) in cash.
Coty, which owns hair and nail beauty brands such as Wella professionals, Sebastian Professional and OPI, is one of the world’s largest beauty companies with approximate $9 billion in revenue. Other famous brands by COTY are Calvin Klein, Marc Jacobs, Hugo Boss, Gucci, COVER GIRL. Coty has approximately 20,000 colleagues globally and its products are sold in over 130 countries.
The addition of ghd’s market-leading lines of flat irons, hair curlers hair dryers and other hair tools further strengthens Coty’s worldwide leading position in the professional hair category. This will enable Coty to offer salon partners and their clients an enhanced and more premium range of hair solutions. It also will accelerate GHD’s strong track record of growth through Coty’s channel technology and category capabilities combined with ghd’s strong innovation pipeline, superior technology and robust technical expertise.
GHD, which stands for “Good Hair Day,” a london-based hair styling appliances brand, generated ₤178 million in revenues in 2016.The company has been expanding from its core salon channel into premium retail and e-commerce and has commercial operations in more than 7 markets. It will become part of the Coty professional beauty division and managed as a standalone business.
The transaction is subject to regulatory clearances and other customary closing conditions, and is expected to close by the end of 2016.
The all-cash deal is expected to immediately add to Coty’s earnings, Coty said.
