GHD to be auctioned with an estimated price-tag of over £400m

The owners of GHD, a hair products supplier, is to sell the brand at an auction with estimates of over £400m.

Private equity firm Lion Capital has appointed Rothschild, an independent advisory group, to oversee the auction, Sky News reported.

Lion Capital, which specialises in improving consumer products, has owned GHD (Good Hair Day) since 2013.

GHD made £33.7m in pre-tax profit in the financial year 2015-16. The company is roughly valued at 13 times its earnings at a price of £400m. Last year sales grew £181.2m.

A source told Sky News, "The bankers are telling bidders that they can turn GHD into a billion dollar brand".

The company is eager to extend its reach beyond the UK by increasing sales in counties such as China, India, Brazil and South Korea.

Documents about the sale claim that the GHD has a greater net promoter score, a customer loyalty metric, than brands like as Apple.

GHD was founded in Bradford, West Yorkshire by Martin Penny, Gary Douglas and Robert Powls in 2001. They bought the rights to a South Korean hair straitening iron, with an initial investment of £15,000.

The high-end brand relies on endorsements from celebrities and has an association with Victoria Beckham’s fashion business.