Information on the Target

Great Lengths is a prestigious Italian manufacturer and distributor specializing in premium natural hair extensions for professional salons worldwide. Established in 1992 in Rome, the company has thrived under the leadership of the second generation of the Antonino family. Great Lengths has positioned itself as a global frontrunner in the B2B luxury market, gaining recognition for its high-quality products and unique internalized production approach, which ensures superior product quality and optimal sourcing capabilities.

In 2023, Great Lengths recorded an impressive output exceeding 47 million euros, with an overwhelming 93 percent of its revenue generated from international markets, primarily focusing on the DACH region. The company’s commitment to sustainability is evidenced by its B Corporation certification, reflecting its adherence to low-impact production technologies and stringent environmental, social, and governance (ESG) standards.

Industry Overview in Italy

The Italian luxury goods market, particularly in the beauty and wellness sector, is characterized by a rich tradition and significant global influence. Known for its craftsmanship and quality, Italy has a long-standing reputation for producing high-end products that cater to discerning clients worldwide. The natural hair extension segment is increasingly gaining traction as consumers seek sustainable and ethically sourced beauty products.

As consumers become more aware of the environmental implications of their purchases, the demand for ethical and sustainable luxury products has surged. This trend is particularly pronounced in the hair care industry, where customers are prioritizing brands that demonstrate social responsibility and environmentally friendly practices. Consequently, companies like Great Lengths that uphold strong ESG values are well-positioned to capitalize on this growing market segment.

The Italian beauty industry is also witnessing a digital transformation, with an increasing number of brands embracing e-commerce and digital marketing strategies to reach a broader audience. As businesses adapt to these changes, strong partnerships and innovative approaches will be essential for maintaining competitiveness in this evolving landscape.

Furthermore, the Italian economy is gradually recovering from the challenges posed by the pandemic, resulting in increased consumer spending in the beauty sector. This presents further opportunities for growth, particularly for luxury brands that continue to enhance their product offerings and expand into new geographies.

The Rationale Behind the Deal

This strategic investment by DBAG Fund VIII aims to bolster Great Lengths' global footprint and reinforce its commitment to sustainable luxury. By investing alongside the Antonino family, DBAG acknowledges the family's confidence in the brand’s ongoing success while aligning its resources and expertise with the company's growth objectives.

The investment will focus on attracting top talents and enhancing the salesforce, pivotal components of the outlined growth strategy. This approach underscores the commitment to not only expanding market presence but also to ensuring that product quality and brand integrity remain unharmed as the company scales.

Information About the Investor

Deutsche Beteiligungs AG (DBAG) is a notable player in the private equity sector, specializing in investments that foster sustainable growth in established businesses. With a robust portfolio that spans various industries, DBAG is dedicated to forming partnerships with family-owned companies that exhibit strong growth ambitions. Their strategic approach emphasizes long-term value creation through the infusion of both financial and managerial resources.

In particular, DBAG has established a significant presence in the Italian market with this latest investment marking its fourth platform investment in the region. The firm’s commitment to nurturing the core values and identities of its portfolio companies while guiding them through their growth trajectories makes DBAG a well-suited partner for Great Lengths.

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The investment in Great Lengths by DBAG appears to be a prudent and strategically sound decision. By aligning with a company that boasts a strong reputation in the luxury market and an impressive growth trajectory, DBAG positions itself to benefit from the anticipated expansion within the beauty industry, notably in sustainable luxury segments.

The focus on sustainability resonates well with contemporary consumer preferences, which prioritize ethical and eco-friendly products. This trend is projected to continue, suggesting that Great Lengths' commitment to preserving high ESG standards will attract a growing customer base willing to invest in premium offerings.

Addtionally, DBAG's expertise in enhancing organizational structures and expanding market reach will likely catalyze the company's growth endeavors. By strengthening the salesforce and investing in talent acquisition, Great Lengths can further elevate its brand presence and penetrate additional geographic markets.

Overall, this partnership holds promising potential for both DBAG and Great Lengths, pointing to a future marked by enhanced growth and sustainability as they navigate the evolving landscape of the luxury hair care industry.

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