Coty has agreed a deal to buy hair care brand ghd
The hair care brand ghd that launched in Bradford, West Yorkshire, in 2001, taking its name from the phrase: “good hair day” sells a range of high-end hair straighteners, hair dryers and other styling tools as well as a growing range of hair care products.
Ghd is currently owned by investment service Lion Capital and was put up for sale earlier this year. Rothschild is overseeing the auction for the brand. Lion Capital paid £300m for ghd in 2013, purchasing it from Montagu which previously paid £160m for the brand in 2007 and oversaw a doubling of its profits. Earlier this year, ghd reported a 9.5% increase in pre-tax profit for the financial year 2015/16 making it an attractive brand to prospective buyers. Ghd has seen sales increase by 30% in the three years.
Coty’s decision to buy the British brand could have been partially fuelled by the falling value of the pound since June, making the deal much more lucrative for the US-based business.
The deal is expected to close by the end of 2016.