A Yorkshire-based hairstyling brand which counts Katy Perry among its celebrity fans is set for further global expansion after gaining new owners.
Montagu Private Equity revealed that it had reached an agreement to sell Jemella Group, which trades under the ghd brand, to Lion Capital, the consumer-focused investment firm, for an estimated £300m.
Ghd – which stands for ‘good hair day’ – was established in Silsden, West Yorkshire, in 2001 by chemist Martin Penny, plant-hire specialist Gary Douglas and hairdresser Robert Powls.
The company’s upmarket styling irons have proved popular among hairstylists because of their curved barrels and ceramic plates. This means that women can use the irons to change their look, without damaging their hair.
Montagu acquired ghd in 2007 for £160m and focused on delivering growth by expanding into new markets and investing in research and development. Ghd has proved a hit with consumers in the US, European and Australasian markets. The company’s profits have more than doubled under Montagu’s ownership to more than £32m on revenues of more £150m. It’s achieved annual sales of more than two million units.
Lyndon Lea, a partner at Lion, said: “Since its very early days, ghd has proved itself to be an iconic brand that engenders a deep emotional attachment and loyalty among its customers... “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.”
Paul Stoneham, the chief executive of ghd, which is based in Bridgewater Place, Leeds, said: “Our partnership with Montagu has been a great success and enabled us to build the ghd brand.”
It was also revealed yesterday that Perrigo, the maker of generic and over the counter drugs, had bought Rosemont Pharmaceuticals, which like ghd, is based in LS11, for around $283m. Rosemont manufactures and supplies more than 150 liquid medicines for joint diseases and infections.