Coty has agreed a deal to buy hair care brand ghd.
The cosmetics giant recently completed a historic $12.5bn deal to buy much of P&G’s beauty business and has now confirmed that it is purchasing ghd for £420m.
ghd has beautifully designed and superior performing products, and is the preferred choice for discerning professionals and consumers alike."
— Camillo Pane, CEO at Coty
ghd is currently owned by investment service Lion Capital and was put up for sale earlier this year. Rothschild is overseeing the auction for the brand.
Lion Capital paid £300m for ghd in 2013, purchasing it from Montagu which previously paid £160m for the brand in 2007 and oversaw a doubling of its profits.
Coty’s decision to buy the British brand could have been partially fuelled by the falling value of the pound since June, making the deal much more lucrative for the US-based business.
The deal is expected to close by the end of 2016.
Camillo Pane, CEO at Coty, said that the company was "pleased" to add ghd to its portfolio. He said: "ghd has beautifully designed and superior performing products, and is the preferred choice for discerning professionals and consumers alike.
"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."
Earlier this year, ghd reported a 9.5% increase in pre-tax profit for the financial year 2015/16 making it an attractive brand to prospective buyers.
Lyndon Lea, Partner at Lion Capital, said that ghd has seen sales increase by 30% in the three years it has been owned by the company.
He said: "We are pleased to be selling ghd to Coty, a global leader in the beauty category, where it can take its rightful place among Coty's unique family of brands."
The brand sells a range of high-end hair straighteners, hair dryers and other styling tools as well as a growing range of hair care products.
It launched in Bradford, West Yorkshire, in 2001, taking its name from the phrase: “good hair day”.
Other companies rumoured to have shown interest in purchasing ghd include CVC Capital Partners and Panasonic.