The move follows Coty’s acquisition of 43 of Procter & Gamble’s fragrance, colour cosmetics and hair care brands that completed earlier this year, at an estimated cost of over USD 12bn.
The ghd acquisition, priced at a reported GBP 420m, was completed last week, and represents a first step into the hair styling world for Coty, suggesting the beauty giant is looking to expand its reach.
Complementary category
Some commentators have described ghd as ‘a good fit’ for Coty. The company is commonly defined by its high quality hair straighteners, but also carries a broad range of hair dryers, curlers and other styling appliances.
Coty executives themselves have said that the positioning of ghd, which is at the top end of the category, fits well with its own focus on luxury and prestige products.
Camillo Pane, Coty Chief Executive Officer, said, “We are excited to welcome the ghd company to Coty. The addition of ghd, with their state-of-the-art hair appliances further strengthens our Coty Professional Beauty division, providing us with a strong foothold in an adjacent, complementary category."
In a note of caution, however, some commentators have suggested the move may see Coty taking on more than its ready for.
“It does add another element to an increasingly full plate for management to handle right now,” said Jason Gere, an analyst at KeyBanc Capital Markets Inc in an interview with Bloomberg.
A ‘clear challenger in beauty’
Coty, already one of the world’s largest beauty companies with approximately USD 9bn in revenue, asserts that its recent acquisitions are part of a broader strategy to become a global beauty leader across the board.
Pane confirmed: “We look forward to continuing to grow and nurture ghd internationally as Coty strives to become a global industry leader by being a clear challenger in beauty.”
ghd will become part of the Coty Professional Beauty division, according to the company, where it will be managed as a standalone business led by its current CEO Anthony Davey and management team.
The company has international operations in Europe, Australia, South Africa, and the USA. ghd products are sold through salons, in premium retail and through e-commerce. It is the number one stylist-recommended and number one consumer-preferred styler brand in all of its key markets.