French private equity firm PAI Partners, through its PAI Mid-Market Fund, is to acquire a majority stake in global professional haircare platform Beautynova from BlueGem Capital Partners, a pan-European PE firm focused on non-discretionary consumer staples.
Upon completion of the acquisition, PAI will be the majority shareholder owning a controlling stake, with BlueGem maintaining a significant shareholding alongside a syndicate of co-investors. The investment will support the company’s growth strategy.
BlueGem acquired Beautynova in 2020 and has overseen tripled sales and geographical expansion with a focus on the US, which currently generates 18% of the company’s sales.
In a statement, Emilio Di Spiezio Sardo, a Founding Partner at BlueGem, 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.”
Raffaele Vitale, a Founding Partner of PAI’s Mid-Market Fund, added: “Beautynova is an excellent business with a well-diversified offering and strong footprint in the attractive and resilient global professional haircare market.”
PAI Partners was advised by Raymond James, Banca Akros Banco BPM, Unicredit, White & Case, New Deal Advisors, OC&C, PwC TLS, Latham & Watkins, Willkie Farr & Gallagher and Ramboll. BlueGem was advised by Houlihan Lokey, BPER Corporate & Investment Banking, Latham & Watkins, PwC, PedersoliGattai and ERM. Beautynova was advised by Alvarez & Marsal and Boston Consulting Group.
Beautynova is headquartered in Italy and develops professional haircare products across hair treatment, colouring and styling. Its brands include milk_shake, z.one concept and Medavita. The company exports to over 70 countries and, according to a press release, generates 70% of revenues outside Italy, mainly in the US and Europe.
