Corporate News

LDC completes exit of Original Additions

LDC has completed the sale of branded consumer goods business Original Additions to US-based beauty and personal care company PDC Brands.

Original Additions is behind some of the UK’s best-selling beauty accessory brands in eyelashes, nails and cosmetics, including Eylure, Elegant Touch and Salon System.

LDC backed the secondary buyout of the business in July 2011 and has since supported the organic growth of Original Additions as the management team built on its established and dominant position in the UK and entered new international markets.

During its tenure, LDC helped to take the Original Additions brands to a number of major US retailers, including Ulta, Kohl’s, Target and Walmart. Revenues for the financial year ending 31 March 2016 were £42m.

The deal, which generated a 2.3x money multiple and exit proceeds of £37m, will further accelerate Original Additions’ international expansion.

PDC Brands is a US-market leader in the beauty, personal care and wellness space and is backed by Boston-based private equity house Yellow Wood Partners. The company’s brands, including Dr Teal’s, Body Fantasies, Bod Man, Cantu, Bodycology and Calgon, are found in major mass, chain drug, grocery and specialty retailers throughout the USA and more than 50 markets globally.

Simon Zussman, Managing Director at Original Additions, said: “We had grand plans for the business back in 2011 and needed a long-term partner that could match our ambition. The team at LDC provided the strategic and financial backing that has transformed Original Additions and overseen the rapid growth of our overseas presence. Now, as part of the PDC Brands network, we have a great opportunity to build on the success that we have already achieved and take our popular brands to new customers and markets.”

Andy Grove, Director at LDC, said: “Over the past five years, Original Additions has cemented its position at the forefront of the UK fashion accessory market and developed some of the nation’s leading beauty brands. The growth of the business is testament to the hard work and vision of the management team at Original Additions, but also the value that private equity funding can unlock. We wish Simon and his team all the best in the future.”

Both LDC and the management team at Original Additions were advised on the transaction by Deloitte and Eversheds. Yellow Wood Partners and PDC Brands were advised on the transaction by Lincoln International and Fried Frank.

Article Footnotes

Notes to Editors

  1. LDC is part of the Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority
  2. LDC back ambitious management teams from UK-based companies seeking between £2m and £100m of equity for management buy-outs, institutional buy-outs or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Construction & Property, Financial Services, Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure and Support Services.
  4. LDC has a UK regional network of 9 offices.