Bansk Group has closed on two haircare brands, amika and Eva NYC, in a deal that the firm believes will strengthen its position on the beauty and personal care front.
Based in New York, Bansk Group, which has over $2 billion in assets under management, invests in three other categories: consumer health, food & beverage and household products. The firm is banking on the booming personal care business that complements the unique products of the two companies, partner Chris Kelly told PE Hub in an interview.
“We have seen a large number of consumers interested in hair care at the premium end of the scale,” Kelly said. Both companies, amika and Eva NYC, are Climate Neutral Certified, sustainably minded with cruelty-free products and post-consumer recycled plastic or aluminum packaging.
In identifying the two, Kelly said their strategy was to “find brands that resonate with the consumer and are highly efficacious. Additionally, we like premium brands as we feel that part of the hair care market is underdeveloped. Given amika and Eva NYC’s products satisfy these characteristics, we found the brands to be very attractive.”
Kelly said the firm plans to expand the companies’ physical footprint and scale up their ecommerce business. Post-transaction, amika and Eva NYC will continue to operate as individual brands under their respective brand presidents, Chelsea Riggs and Jane Moran, Kelly added.
Even though the deal comes at a period of elevated inflation in the US that may affect consumer spending, the Bansk Group partner said the firm is confident that strong organic demand for amika and Eva NYC products will help weather any instability.
“We are cognizant of what’s happening in the world,” Kelly said. “We are watching the inflation impact on the consumer and the consumer spending power as well as the global instability and how that impacts the supply chains.”
He said the goal is to create distinct brands that live and flourish on their own. “Our brands speak to our customers at an emotional level,” he said. “These brands have at their core, as part of their mission, to really have an impact both from an environmental as well as a cultural standpoint.”
Kelly said Bansk Group expects that when it achieves its goals in terms of value creation, “there will be a variety of very interested parties, whether strategic or financial buyers.”
Amika was founded in 2009 and has built a passionate and diverse community of consumers and salon professionals, and Eva NYC was founded in 2012. Both companies have been recognized among the fastest growing companies within the personal health care sector by different rating groups.