Posted: 01 / 10 / 2021
Sedulo Corporate Finance have advised on the sale of haircare brand, Hairburst, to global retailer, JD Sports Fashion. The acquisition of the majority stake in the Leeds-based online haircare retailer marks JD Sports’ first steps into the UK’s beauty market.
Founded in 2014 by James Hill, Henry Gwilliam and Matthew Cragg, Hairburst sells vitamin, shampoos and styling products. Their products are scientifically formulated using safe and natural ingredients to deliver a blend of vitamins and minerals to promote hair growth and protection.
The brand has demonstrated its success with products marketed online to customers in France, Italy, US, the Middle East and North Africa, as well as being stocked in several UK retailers. Hairburst’s growth has demonstrated its popularly amongst millennials, with the business boasting 850,000 followers on Instagram and now employing 45 staff.
Despite JD Sports recent acquisition spree in the fashion industry, this transaction marks their first steps into the beauty sector. The group, through Hairburst, will target acquisitions of complementary entrepreneurial businesses to enhance their beauty and well-being offering.
James Hill from Hairburst said:
“We are very excited to partner with JD for the next stage of our growth. JD have already excelled in capturing the Gen Z market in the sports fashion industry giving us many synergy opportunities.
“We are very proud to be the first beauty business to partner with JD on their venture into the beauty industry. With our ability to create amazing products and market through social media, supplemented by JD’s consumer connection, financial power and global scale, we see great potential to build the Hairburst brand and acquire other brands within the sector.”
Peter Cowgill, executive chairman of JD, said:
“We are pleased to have made this initial acquisition in the beauty sector and have been impressed by the capabilities of the management team, who have a strong identity and connection with millennials and Gen Z consumers.”
On the deal, Sedulo Managing Partner, Paul Cheetham-Karcz, added:
“We are delighted to have facilitated this deal. It’s a very exciting partnership, a dynamic management team and brilliant brand from the beauty sector in Hairburst, joining forces with an experienced retail giant in JD.
The fact that this is JD’s first deal in the beauty sector opens the door to endless possibilities. From our perspective, we are delighted to have helped put both parties together and create a deal that has such potential. Our aim is to become a world-class corporate finance firm, and this is a world-class deal.”