Coty Inc. has announced that it has reached a definitive agreement to acquire ghd from Lion Capital LLP for approximately £420 million in cash. 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 addition of ghd’s market-leading and high-performance lines of hair straighteners, hairdryers, curlers and other hairstyling appliances is expected to further strengthen Coty’s worldwide position in the professional hair category.  Coty also aims to accelerate ghd’s strong track record of growth through its channel and category capabilities combined with ghd’s strong innovation pipeline, technology and robust technical expertise.

ghd, which stands for “Good Hair Day,” generated £178 million in revenues in fiscal year 2016.  ghd is headquartered in London and has commercial operations in the United Kingdom, Australia, the United States, Germany, France, Spain, Italy and several other markets.  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.  Anthony Davey will report to Sylvie Moreau, President of Coty Professional Beauty. The transaction is subject to regulatory clearances and other customary closing conditions, and is expected to close by the end of calendar year 2016.

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