(Bloomberg) -- Haircare brand Pump Group Australia and its private-equity backer Anacacia Capital have acquired a substantial stake in New Zealand-based The Department of Brands Ltd.
The deal will nearly double Pump Group's size as the New Zealand firm will be merged into the Australian company, Anacacia Capital Managing Director Jeremy Samuel said. Financial details of the transaction were not disclosed.
Department of Brands' revenues have surged by about 50% since the Covid-19 pandemic began, founder Bex Gold said in an interview this week.
“Sales have been consistent, we're definitely not tapering,” Gold said. The latest transaction will help scaling up Pump Group's direct-to-consumer sales channels to meet the growing demand, she added.
The investment comes as lockdowns have propelled consumers to opt for at-home hair coloring instead of in salons. Retailers including Ulta Beauty Inc. and Walmart Inc. had said the segment became one of their most in-demand among housebound shoppers last year.
The Department of Brands, founded in 2013, focuses on vegan and environmentally-friendly formulations. Its products are available in major supermarket chains in Australia, the U.S. and the U.K. The company falls within the mid-range of a typical investment for Anacacia, which targets businesses between A$5 million ($3.8 million) and A$40 million in profits, Gold said.
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