Partner Article

Findus’ co-owner acquires GHD

The owner of Findus, the business at the centre of the horsemeat scandal, has acquired hair straightener company, GHD from Montagu Private Equity.

Lion Capital is a private equity firm with a stake in the food company Findus, and made a bid for GHD on Sunday, for what is thought to be around £300m.

The hair styling company, whose name is abbreviated from “Good Hair Day”, was bought by Montagu in 2007 for £160m and has since more than doubled its profits upwards of £32m.

The firm sells hair straighteners and styling products through hairdressers and beauty salons, and has increased its sales to over 2 million units.

Since it was acquired by Montagu, GHD has expanded its geographical read in the U.S., Europe and in Australasia.

Simon Pooler, director at Montagu Private Equity, said: “Our sale of ghd to Lion marks the completion of another successful investment for Montagu and we are very proud to have partnered with the company over the past six years.

“We were originally attracted by the strength of the GHD brand and its remarkable customer loyalty. We also saw excellent potential to continue its growth in international markets and great opportunity to develop its new product range and sales channels.”

GHD’s chief executive, Paul Stoneham, added: “Our partnership with Montagu has been a great success and enabled us to build the ghd brand, develop new proprietary technology, create a strong digital presence, expand internationally and enter new hair care categories.”

Lyndon Lea, partner of Lion, commented: “Since its very early days, ghd has proved itself to be an iconic brand that engenders a deep emotional attachment and loyalty amongst its customers, both professional stylists and consumers, on levels rarely achieved by even the strongest consumer brands.

“We look forward to working closely with the management team to accelerate growth in the business through increased investment behind the brand, new product development and expansion of both international and alternative sales channels, in particular online. “

Lloyds Banking supplied funding for the deal, and Montagu were advised by Ernst & Young while Lion Capital were advised by Rothschild.

This was posted in Bdaily's Members' News section by Miranda Dobson .