Hair care group GHD sold to Rimmel parent Coty in £420m deal
The US beauty giant behind Rimmel London and Wella has swooped for British hair products firm GHD in a £420 million deal.
Coty has snapped up the hair straightener and hairdryer manufacturer from private equity firm Lion Capital, which is understood to have put the company up for sale earlier this year.
The all-cash deal is expected to be sealed by the end of 2016, if it wins the backing of regulators.
Camillo Pane, Coty chief executive, said: " 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 move for GHD, which stands for good hair day, comes just two weeks after Coty secured a merger with Procter & Gamble's Speciality Beauty Business.
GHD notched up revenues of £178 million in the 2015-16 financial year across its international operations in Europe, Australia, South Africa and the US.
Lyndon Lea, partner of Lion Capital, said: "Over the three years of our ownership, GHD grew worldwide sales by 30% through a strong pipeline of innovative new products, which deepened the brand's leadership in its core markets and supported its successful entry into new hairstyling categories."
US and Asian companies are said to have ramped up their interest in British firms as they look to capitalise on sterling's collapse following the EU referendum result.
However, it is unclear whether sterling's 18% drop against the US dollar since the Brexit vote had any bearing on Coty's decision.
Coty is one of the world's largest beauty companies, with 9 billion US dollars (£7.4 billion) in revenues.