Celebrity hair company set to extend after MBO
Racoon International, the hair extensions company, has been bought out by its management in a deal worth £6m.
The deal, backed the private equity group Matrix, provides an exit for the company’s founder, Peter Holloway, who established the business in 1995.
The Banbury-based business has grown rapidly since then and now supplies its product in over 2,000 salons in the UK and has business partners in 14 other countries.
Racoon has more than doubled its revenues over the last two years and its products are said to be used by celebrities such as Sophie Anderton, Paris Hilton, Jade Jagger and Sharon Osbourne.
The company has also gained considerable recognition by sponsoring the Miss England beauty pageant, where over half of the finalists wore hair extensions.
Matrix, which has acquired a significant minority stake in the business, said Racoon is both the market leader and the only ‘real’ brand in the sector.
“We have seen tremendous growth in this company and are impressed by the commitment and drive of the management team in their wish to purchase the business at this time,” said Mark Wignall, chief executive at Matrix.
“We have made a number of investments in the beauty and well-being sector and think this is a tremendous growth area.”
The deal was introduced to Matrix by Clearwater Corporate Finance, who acted as advisers to management and project managed the transaction.
The deal was supported by senior debt from Barclays Bank.
© Crimson Business Ltd. 2007