Several of our experts forecast in our 2017 M&A Predictions that we’d see interest in the haircare category. LDC’s £16 million investment in Rush Hair and their strategic plan for the brand are an indication they were right.

WHO: Rush Hair is a UK-based family-run salon business launched 22 years ago by Andy Phouli and Stell Andrew as a single salon in Wimbledon. Their salons are heavily concentrated in London and the South East, but a recent regional expansion has led to openings in Birmingham, Liverpool, Nottingham, York, Manchester, and Bristol.

LDC is the private equity arm of Lloyds Banking Group. Established in 1981, LDC is a leading player in the UK private equity mid-market and supports management buyouts, institutional buyouts, and development capital (replacement, expansion, and acquisition) transactions.

WHY: The investment is earmarked to support a rollout in the UK with the goal of transforming Rush Hair into a “major national brand.”

IN THEIR WORDS:
Stell Andrew, joint CEO and co-founder of Rush, said: “Until now we have grown our business organically but felt the time was right to turbo-charge our expansion plans, which is why private equity investment is a natural next step for us. We are now in a position to substantially increase our national presence and bring the Rush brand to more customers across the country.” LDC Investment Director Alastair Weinel said: “Rush has a proven, scalable model. Its strong brand proposition means the business [is] in an ideal position to push on and grow its UK footprint. The development of its training academy and continued innovation will further support the business’ status as the market-leading player in the hair and beauty sector.”

DETAILS:

• Rush Hair sold a minority stake to private equity firm LDC for approximately £16 million.
• Rush has revenue of £36 million and 85 salons across the UK.
• LDC aims to help Rush almost double its salon count over the next four years, will develop Shop Rush, an e-commerce platform, and plans to open a training academy in London’s Covent Garden this year.
• LDC investment directors Alastair Weinel and Tanya Thompson will join the company’s board.
• LDC was advised by Shoosmiths, Spectrum Corporate Finance, KMPG, Pragma Consulting, Catalysis, and JLT. Rush’s management team was advised by Deloitte and Osborne Clarke.

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