Coty Announces GHD Acquisition Agreement: The Tool Line to Join OPI, Wella in Growing Pro Beauty Portfolio
Coty announced on October 17, 2016 that it has reached a definitive agreement to acquire GHD, a brand of high-end hairstyling appliances from Lion Capital LLP for approximately $510 million.
The addition of GHD's high-performance lines of flatirons, blow dryers, curling irons and other styling appliances is expected to further strengthen Coty’s position in the professional hair category.
"This move underlines Coty’s commitment to continually elevate professional beauty and serve salon professionals and their clients with standard-setting products and services," says Sylvie Moreau, President of Coty Professional Beauty. "I am delighted to see these three iconic salon brands—Wella, OPI and GHD—come together under the Coty Professional Beauty division."
GHD, which stands for “Good Hair Day,” generated ₤178 million in revenues in fiscal year 2016. The brand, which is headquartered in London and has commercial operations in the United Kingdom, Australia, the U.S., Germany, France, Spain, Italy and other markets, 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 management team. Davey will report to Moreau.
“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," says Camillo Pane, Coty CEO. "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.”
Anthony Davey, ghd CEO, added: “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. 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.