UK-based Montagu Private Equity LLP has agreed to dispose of its hair styling products firm Jemella Group Ltd (dba ghd) to rival private equity firm Lion Capital LLP.
The private equity groups did not disclose the amount they had agreed on. However, sources with knowledge of the matter told Reuters that the professional hair styling products supplier would change hands for almost £300m ($474m/€355m).
Montagu became the owner of ghd in 2007, when it bought the business for £160m. With the support of its private equity partner, ghd expanded its operations through entry into new markets and invested substantial amounts into new product development.
The company also diversified its sales channels, stepped up international marketing efforts and launched brand development campaigns. As a result, ghd has increased its profits more than twofold to £32m, generating revenues in excess of £150m, according to the statement.
Ernst & Young LLP served as adviser to Montagu and ghd, while Rothschild provided counsel to Lion Capital. Financing for the acquisition comes from Lloyds Banking Group Plc (LON:LLOY).