Main menu links
Montagu Private Equity backs management in the £160m MBO of ghd
For more information please contact:
Simon PoolerDirector
T: +44 161 233 6662
E: simon.pooler@ montagu.com
More information about Simon Pooler
Montagu Private Equity has funded a £160 million buyout of the
Jemella Group, alongside the management team. Trading under the
iconic “ghd” brand, Jemella is the market leader in premium hair
styling irons, complementary wet products and other hair styling
accessories sold through professional hair salons.
The transaction sees Montagu acquire a significant equity stake in ghd as well as providing an injection of capital to fund the continuing growth in both the UK and overseas markets. The deal provides a successful exit for LDC, the private equity division of Lloyds TSB, which funded a buy out of minority shareholders in 2006.
Since the business’s inception in 2001, ghd has experienced exponential growth winning the Sunday Times Fast Track 100, fastest growing business award in 2005 whilst establishing one of the most powerful and sought after brands in the hair care industry. The business markets its products through over 50,000 salons globally. Through developing its product range and creating a strong hair and beauty brand targeted at the professional hair stylists; “ghd” has generated an exceptional following of loyal customers and has become the clear market leader for styling irons in the UK.
Based in West Yorkshire, the company has also established successful international operations in Australia, South Africa, North America and several European countries and employs over 300 people. The viral success of the business in the UK is now being replicated overseas, with the “must have” styling irons generating considerable demand from women worldwide.
ghd management commented, “The partnership with Montagu and their commitment to a long term investment strategy, gives the management team the opportunity to transform the business into a truly global brand.”
Simon Pooler, a director of Montagu who joins the board of ghd as a non-executive director, added: “ghd is a remarkable success story and is now a serious international business. This is an excellent opportunity to deploy our capital to support ghd’s continuing global expansion.”
Both the LDC and Montagu transactions were arranged by Ernst & Young’s Manchester M&A team.
Andy Ball, regional managing director of LDC, said: “ghd has successfully expanded its international footprint over the last 12 months whilst maintaining its pre-eminent position in the UK market. Thanks to their passion and commitment, the management team has significantly increased the business’ scale during this period, delivering impressive sales, profit and employee growth, and it’s now in a strong position to become a dominant global hair care brand. We wish the team and Montagu every success in the future.”
Debt funding for the deal was provided by Barclays, Lloyds TSB Corporate Markets and HSBC.
The transaction sees Montagu acquire a significant equity stake in ghd as well as providing an injection of capital to fund the continuing growth in both the UK and overseas markets. The deal provides a successful exit for LDC, the private equity division of Lloyds TSB, which funded a buy out of minority shareholders in 2006.
Since the business’s inception in 2001, ghd has experienced exponential growth winning the Sunday Times Fast Track 100, fastest growing business award in 2005 whilst establishing one of the most powerful and sought after brands in the hair care industry. The business markets its products through over 50,000 salons globally. Through developing its product range and creating a strong hair and beauty brand targeted at the professional hair stylists; “ghd” has generated an exceptional following of loyal customers and has become the clear market leader for styling irons in the UK.
Based in West Yorkshire, the company has also established successful international operations in Australia, South Africa, North America and several European countries and employs over 300 people. The viral success of the business in the UK is now being replicated overseas, with the “must have” styling irons generating considerable demand from women worldwide.
ghd management commented, “The partnership with Montagu and their commitment to a long term investment strategy, gives the management team the opportunity to transform the business into a truly global brand.”
Simon Pooler, a director of Montagu who joins the board of ghd as a non-executive director, added: “ghd is a remarkable success story and is now a serious international business. This is an excellent opportunity to deploy our capital to support ghd’s continuing global expansion.”
Both the LDC and Montagu transactions were arranged by Ernst & Young’s Manchester M&A team.
Andy Ball, regional managing director of LDC, said: “ghd has successfully expanded its international footprint over the last 12 months whilst maintaining its pre-eminent position in the UK market. Thanks to their passion and commitment, the management team has significantly increased the business’ scale during this period, delivering impressive sales, profit and employee growth, and it’s now in a strong position to become a dominant global hair care brand. We wish the team and Montagu every success in the future.”
Debt funding for the deal was provided by Barclays, Lloyds TSB Corporate Markets and HSBC.