LFG Brands buys A Class Beauty to expand Nordic reach
What's the deal? Finland's LFG BrandsDealroom has a profile for this one. Try Dealroom →, the parent company behind the M RoomDealroom has a profile for this one. Try Dealroom → barbershop chain and Blue LagoonDealroom has a profile for this one. Try Dealroom → cosmetics chain, is acquiring a majority stake in A Class Beauty and DesignDealroom has a profile for this one. Try Dealroom →, an importer of professional beauty products and treatment devices. The share majority transfers to LFG on October 1. Terms were undisclosed.
What changes? Previous shareholders stay on as minority owners and remain in company management. LFG says the deal makes it one of the most significant beauty players in the Nordics.
By the numbers: A Class Beauty posted €2 million in revenue last year. LFG Brands' combined brand revenue exceeds €20 million, and it says the acquisition improves profitability.
What's the endgame? LFG is chasing growth through both its existing chain brands and further acquisitions. It also launched a new technology platform, Voilya, built in-house for industry chains.
The product: Voilya combines bookings, point of sale, shifts, space and device optimisation, payroll, inventory, customer data, marketing, and communication on one platform, using AI to optimise capacity and resources. "It was built by people who had the problem themselves. The market had no system that served larger chains this comprehensively. So we made it ourselves," said chief executive officer Markku Kosonen (translated from Finnish).
Why now? "Until now, practically all our growth has required opening a new location. Distribution and technology don't grow that way," Kosonen said (translated from Finnish). The company plans to take Voilya abroad, though at home it serves only a few chains since LFG competes in the same market.
The signal: LFG's roots go back to the M Room barbershop chain founded in 2008, and the group now employs about 500 service professionals. The move signals a shift from running chains to also selling the tools that run them.
Read more: kauppalehti.fi
Image credit: Random Retail
