Yellow Wood to divest beauty firm PDC Brands to CVC

Private equity firm Yellow Wood Partners has signed an agreement to divest beauty and personal care products maker PDC Brands to investment company CVC Capital Partners.

Financial details of the transaction have not been divulged.

Founded in 1981, the beauty company retails a variety of brands across wellness, haircare, beauty, cosmetics, fragrance, bath care and body care sectors at select retailers in 60 countries, including the US and the UK.

Under Yellow Wood, PDC’s portfolio expanded with the addition of nine brands through five acquisitions.

Yellow Wood's founding partner Dana Schmaltz said: "During our partnership with PDC Brands the company grew dramatically with revenues growing over four times and earnings before interest, tax, depreciation, and amortisation (EBITDA) growing over five times over the last five years.

“The strong performance has been driven by strong organic sales growth combined with the addition of five acquisitions of nine brands that were added to the portfolio.”

PDC portfolio of brands include Dr Teal’s, cantu, Eylure, Elegant Touch, salonsystem, Body Fantasies, Bod man, bodycology, Calgon, and the healing garden.

PDC Brands' chief executive officer (CEO) James Stammer said: "The Yellow Wood team completely understood our business and provided extremely helpful tools and functional skill sets each step of the way, enabling our brands to grow and thrive.”

The divestiture is expected to benefit PDC’s employees and customers, as well as offer access to enhanced financial, marketing, and operational resources.

Expected to be completed this month, the deal is subject to approval by the relevant competition authorities.