Information on the target
Les Secrets de Loly, a brand founded by Kelly Massol in 2009, specializes in hair care products tailored for textured hair types, including curly, frizzy, and wavy hair. The company has recently been valued between €160 million and €180 million as it embarks on an international expansion. This marks a significant milestone for the brand, which has successfully self-financed its operations since inception until its first buy-out in 2022.
In this latest capital operation, the Italian investment fund Quadrivio Group has joined as a partner through a second leveraged buyout (LBO). This move allows Quilvest Capital Partners, which previously held a minority stake following the first buy-out, to exit its position. Kelly Massol, while taking a cash-out from the transaction, has chosen to reinvest significantly to maintain co-control of the company.
Industry overview in the target’s specific country
The hair care industry in France has seen a notable shift towards specialized products catering to diverse hair types, particularly textured hair. With an increasing awareness of the unique needs of curly and frizzy hair, brands like Les Secrets de Loly have found a growing market. The demand for inclusive beauty products has surged, reflecting broader societal changes towards diversity and representation in the beauty sector.
In recent years, the French market has experienced a trend towards organic and natural ingredients, with consumers becoming more conscious of the products they use. This shift has opened up opportunities for brands that prioritize quality and sustainability. Les Secrets de Loly aligns well with this trend, offering products that are not only effective but also cater to the specific needs of textured hair.
Furthermore, the rise of e-commerce has transformed the retail landscape, allowing niche brands to reach a wider audience without the constraints of traditional retail. Les Secrets de Loly has effectively utilized online platforms alongside partnerships with specialized retailers like Sephora and Marionnaud, enhancing its visibility and accessibility to consumers. As the brand looks to expand internationally, it is well-positioned to leverage these trends in markets across Southern Europe, the Maghreb, and the Middle East.
The rationale behind the deal The strategic rationale behind this second LBO is to accelerate Les Secrets de Loly's international growth while maintaining its core identity. With the backing of Quadrivio Group, the brand aims to enhanc…