Coty Inc. has reached a definitive agreement to acquire Good Hair Day (GHD), a premium brand in high-end hair styling appliances, from Lion Capital for approximately $510 million in cash.
The addition of GHD’s high-performance lines of hair straighteners, hair dryers, curlers and other hair styling appliances is expected to further strengthen Coty’s position in the professional hair category, the company said, but the brand has also been expanding from its core salon channel into premium retail and e-commerce.
Camillo Pane, chief executive officer, Coty, said, “GHD has beautifully designed and superior performing products, and is the preferred choice for discerning professionals and consumers alike. 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.”
The brand 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 Sylvie Moreau, president of Coty Professional Beauty.
The transaction will be funded with a combination of cash on hand and available debt facilities. Upon closing, the acquisition is expected to be immediately accretive to Coty’s earnings. The transaction is subject to regulatory clearances and other customary closing conditions, and is expected to close by the end of 2016.