Lion Capital buys GHD from Montagu

Carmen Reichman
11 February 2013

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Lion Capital has acquired UK-based professional hair styling brand GHD from Montagu Private Equity for an estimated ТЃ300m.

The GP plans to accelerate growth in the business by increasing investment in the brand, developing new products and expanding international sales, particularly online. Montagu is believed to have made a 3x money multiple return on its original investment.

A wide range of trade and institutional investors were said to have been interested in the company due to its visibility, international presence and growth prospect in emerging markets.

Debt
Financing was provided by Lloyds.

Previous funding
Montagu acquired GHD from LDC in 2007 for £160m, including £60m of debt provided by Barclays, HSBC and Lloyds TSB. During the holding period the company expanded into new markets in the US, Europe and Australasia. The GP increased investment in the company's R&D, diversified sales channels, enhanced international marketing and developed the brand.

The company's profits more than doubled under Montagu's ownership to approximately £32m on revenues of £150m and sales of two million units.

Company
GHD sells hair styling appliances including straighteners, hair dryers, brushes and styling products across multiple sales platforms. The company is based in Keighley and was founded in 2001.

People
Lyndon Lea worked on the deal for Lion Capital while Simon Pooler represented Montagu.

Advisers
Equity – Rothschild (Corporate finance); SJ Berwin (Legal).
Vendor – Ernst & Young (Corporate finance); DLA Piper (Legal).