M&A are becoming more and more well-known in the hair & beauty industry, especially for those SMEs that do not have a big enough structure to face up to the challenge of modern markets. Beautynova has been very active in creating a strong group of valued and successful brands that now work together to improve their performance around the world.
Now is the time for a new chapter in the financial history of the group. PAI Partners, a pre-eminent private equity firm, and Bluegem Capital Partners (“Bluegem”), a specialist pan-European private equity firm announced on their websites that PAI has agreed to acquire a majority stake in Beautynova, a leading global professional haircare platform, from Bluegem.
The acquisition will be made through PAI’s fund dedicated to mid-market opportunities, PAI Mid-Market Fund. Upon completion, PAI will be the majority shareholder owning a controlling stake, with Bluegem maintaining a significant shareholding alongside a syndicate of Bluegem co-investors.
In the last decade Beautynova has gathered some of the most iconic Italian brands of the hair and beauty industry, now it owns a premium portfolio of brands, including milk_shake®, z.one concept™ and Medavita. It is also a leading developer of professional haircare products across hair treatment, colouring and styling, with over 18,000 formulas. Beautynova exports to more than 70 countries, generating 70% of revenues outside Italy, mainly in the US and Europe, through professional and consumer channels.
Under Bluegem’s ownership since 2020, Beautynova has evolved into a leading professional haircare platform, more than tripling its sales and experiencing substantial geographical expansion, with a particular focus on the US which today generates 18% of the company’s sales.
The company now has a strong platform to accelerate that growth across all its major markets, including the US and Europe. PAI, together with Bluegem, will support Beautynova and its management team in achieving its growth strategy of further developing its brands. PAI, which has completed 38 buyouts in the Food & Consumer sector since inception, will draw on its significant experience in the sector to help Beautynova continue to adapt to evolving consumer trends.
Stefano Banfo, Beautynova CEO, said: “Emilio and Bluegem have shown true partnership by bringing unwavering support for our innovative vision and enabling meaningful growth. Over the last four years, the company has strengthened the senior management team and invested in state-of-the-art production facilities, world-class ERP systems and innovative product development, ensuring we have the resources and expertise to push boundaries and set new industry standards. We look forward to working with PAI and Bluegem as we continue on this exciting journey of innovation and growth.”
Emilio Di Spiezio Sardo, Bluegem Founding Partner, said: “Beautynova exemplifies our playbook of creating alpha returns from everyday consumer staple businesses. Through partnering with a strong management team in an industry with robust fundamentals, we have delivered business transformation underpinned by international expansion, digitalisation and new product development. I would like to thank Stefano for his collaboration in driving this growth, which has swiftly delivered value for our investors. We are excited to share the second part of our journey with PAI Partners, a global investor with a strong track record in consumer businesses and a global footprint including the US, a strategic market for the company.”
Raffaele Vitale, a Founding Partner of PAI MMF, said: “Beautynova is an excellent business with a well-diversified offering and strong footprint in the attractive and resilient global professional haircare market. We look forward to working with Stefano and the team, alongside Bluegem, on the next chapter of growth, continuing PAI MMF’s approach of partnering with strong brand platforms and building international leaders in the mid-market.”
