Mid-market private-equity firm LDC will support a national rollout programme by leading hair and beauty brand Rush, to the tune of a £16 million minority investment.
Rush comprises 85 salons mainly concentrated in London and the South East, with a store located on Queen Victoria Street in Reading. A recent regional-salon opening programme has taken Rush to major UK cities including Manchester, Liverpool, Nottingham, Birmingham, Bristol and York. L’Oreal is a key strategic brand partner, supplying both retail and professional products.
The investment will help accelerate Rush’s national expansion of the brand as the company plans to accelerate the rollout and almost double its salon count over the next four years. To reinforce the brand’s creative reputation, the partnership will also support the opening of Rush’s new Covent Garden academy which will offer industry leading training to stylists. Rush will also invest in Shop Rush, the Group’s online hair and beauty e-commerce platform.
The UK hair market is currently worth £6.7 billion and is forecast to grow at 2% per annum over the next five years.
The deal was led by the south team of LDC, headed by managing director Yann Souillard, and with Chris Baker, investment director playing a significant role in the transaction. As part of the deal, LDC will acquire a minority shareholding, which will see investment directors Alastair Weinel and Tanya Thompson join the board of the business.
Alastair Weinel, investment director of LDC in the south, said: “Rush has a proven scalable model. Its strong brand proposition means the business 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.”
LDC was advised by Shoosmiths, Spectrum Corporate Finance, KMPG, Pragma Consulting, Catalysis and JLT. The management team was advised by Deloitte and Osborne Clarke.