18 Mar 2024

PAI Partners (“PAI”), a pre-eminent private equity firm, and Bluegem Capital Partners (“Bluegem”), a specialist pan-European private equity firm focused on non-discretionary consumer staples, today announce 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 (“PAI MMF”). 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.

Headquartered in Italy, Beautynova 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 been a true partner, 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 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.”

Bluegem was advised by Houlihan Lokey (lead financial adviser), BPER Corporate & Investment Banking (co-lead financial adviser), Latham & Watkins, PwC, PedersoliGattai and ERM. 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. Beautynova was advised by Alvarez & Marsal and Boston Consulting Group.