Carol’s Daughter brand may be put up for sale

By Simon Pitman contact

- Last updated on GMT

Related tags: Hair care products, Brand management

Although Carol’s Daughter is a niche hair care brand designed for curly hair, the fact that it has celebrity backers gives rumors it may be up for sale a little more punch.

The company, which is owned by private equity firm Pegasus Captital Advisors, is exploring the possibility of a sale, according to sources close to the negotiation process, a Reuters report stated last week.

Pegasus Captital is being advised by Moellis & Co. as to the best approach to take with the sale, the price and who will be the best type of business to take on the brand’s future development.

Multi-national, take note

Carol’s Daughter was founded by former Cosby Show actress Lisa Price, and, together with specialized natural-based hair care products, it also markets a range of skin care products, as well as body and bath ranges and gift sets.

The company’s image and niche positioning means it could be a good fit for some of the bigger player cosmetic players that have been scooping up other interesting niche brands in recent years.

Possible buyers could include names such as Estee Lauder, Shiseido, Procter & Gamble and L’Oreal, who have all made similar acquisitions in recent years.

Founder's star status got business off to a good start

 The company’s first product line first hit stores in the 1980s, when Price was a member of the cast of the Cosby show, a position that gave the business a high level of exposure that ignited its success.

Its range of natural-based hair care products, which include ingredients such as mimosa, tui and macadamia, have risen to prominence on the back of tapping into the still fast-growing green/naturals trend, as well as serving the growing market for hair care products with targeted functionality.

Price’s connections with the entertainment industry may well have helped to secure high profile investors in th 2000s, when the product line started to achieve more mainstream success.

Investors have included record producer Steve Stoute, who led a venture to raise $10m to help boost the business, while other investors have included pop star Jay-Z and actor/singer Will Smith, and celebrity spokespeople such as Mary J. Blige.

Related topics: Business & Financial

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