ghd refinances for growth
YORKSHIRE company ghd, which was acquired by Lion Capital just over a year ago, announced it has refinanced for growth with JP Morgan and Barclays.
The iconic brand produces premium hair styling products, including stylers, dryers and accessories.
The business has delivered rapid international expansion in recent years and completed its debut £165m offering of senior secured notes due 2020 via bookrunners JP Morgan and Barclays.
The transaction will allow the company to refinance existing senior debt and repay a portion of shareholder loans.
Consequently, the company moves to an all-bond capital structure which it says “more appropriately” meets the company’s continued international growth strategy.
Alongside, ghd has also agreed a £20m multi-currency revolving credit facility through Barclays and JP Morgan.
Tomas Mason, relationship director with Barclays Corporate, said: “This deal demonstrates Barclays appetite to fund quality transactions with tailored solutions. ghd is a longstanding client and, under Lion’s ownership, we are confident the business will continue to grow.”
ghd was sold by private equity firm Montagu to Lion Capital for an undisclosed sum last February.
ghd, best known for its range of styling irons sold through hair salons across the world, is based in Leeds after being founded by a trio of businessmen who operated out of Ilkley in 2001.
Montagu acquired ghd for £160m in 2007 and focused on launching into new markets and investing in research and development.
The sale of more then 2m units a year has seen ghd’s profits grow to £32m on revenues of more than £150m. Its product range includes straighteners, hair dryers, brushes and styling products.
