Coty wasted no time following the closing of its purchase of the P&G brands with the announced acquisition of Good Hair Day (ghd) from Lion Capital for approximately $510 million. Founded in 2001, ghd is a U.K.-based premium, electrical styling brand providing a range of stylers, hairdryers and curling irons through the salon channel and increasingly through a multi-channel distribution network. Coty will fold ghd into its Professional Beauty division, which includes recently added brands Wella, Sebastian, and Clairol Professional.
According to industry sources, ghd generated sales of approximately $220 million in fiscal year 2016, representing a revenue multiple of 2.3x. The transaction is expected to close by the end of 2016.
In other prestige related news, the Estée Lauder Companies announced the acquisition of premium color cosmetics brand, BECCA Cosmetics. BECCA is a high-growth makeup brand offering complexion and color products that include primers, concealers, foundations, blushes and highlighters for a wide range of skin tones. Founded in 2001 and part of the Luxury Brand Partners portfolio since 2012, BECCA has experienced tremendous growth over the past several years and is currently sold in Sephora, Ulta, select department stores, and through its own Website. The deal is Estée Lauder’s first color cosmetics transaction since Smashbox in 2010. The transaction is expected to close in November.