Coty buys hair straightening player ghd for £420m

By Simon Pitman contact

- Last updated on GMT

Coty buys hair straightening player ghd for £420m

Related tags: Hairstyle, Hairdressing

Coty has expanded its international footprint yet further with the acquisition of Good Hair Day (ghd), a UK-based company specialising in hair straighteners and appliances.

The transaction is a cash offer and will be funded by a combination of Coty’s own cash reserves and available debt facilities and will add to Coty’s revenues as soon as the deal is closed.

Started by three British hairdressers, ghd has grown to become one of the biggest global players in the hair straightening and appliance category, a competitive area that has seen massive growth in the last few years.

A good fit for Coty

The company generate a revenue of £178 million in 2015 from markets such as the UK, Australia, France, Germany, and the U.S, so the cash offer is in line with many similar acquisitions in the beauty space, whereby high-growth players are being sold for approximately three times their annual revenue.

The transaction is expected to complete by the end of the year, upon the approval of regulatory authorities.

Although the company has come to be defined by its high quality hair straighteners, it also carries a broad range of hairdryers, curlers and other hairstyling appliances.

Coty executives say that the positioning of ghd, which is at the top end of the category, fits well with its own focus on luxury and prestige products.

Fits well with the professional portfolio

But more specifically the deal will allow the company to increase its portfolio offering for the fast-growing professional hair category, although the range will also be readily available to consumers.

The newly acquired business will be managed as standalone business by its current CEO Anthony Davey and management team, who will report to Sylvie Moreau, President of Coty Professional Beauty.

“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,” ​said Camillo Pane, Coty Chief Executive Officer. 

Coty makes its mark as a major multinational

Coty has more than doubled in size in the last few years, as a result of a rash of significant investments that have seen it acquire a number of new businesses.

In February of this year, the EC approved the company’s biggest acquisition to date, which saw it take on 43 of Procter & Gamble’s fragrance, colour cosmetics and hair care brands in a deal estimated to have been worth over &12 billion.

The transaction has seen Coty take steps into uncharted territory, with an exposure to the hair styling world with P&G’s hair colour business, led by Wella and Clairol as well as exposure in previously unchartered geographies. 

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