Intrepid Investment Bankers, a leading middle-market investment bank, announced July 17 the acquisition of its client, Chatters Canada—the largest retailer of professional haircare products in Canada and one of the largest hair-salon operators in that country—by ONCAP, the middle-market private-equity platform of Onex Corp., in partnership with the existing management team. The investment is being made by ONCAP III.
“We selected Intrepid based on its extensive experience in the beauty-care industry and its knowledge of the professional haircare sector—and it delivered,” said Jason Volk, Chatters CEO. “It took the time to understand our brand, business model, vision and shareholder objectives. Its strategic advice and insights were critical throughout our process. Best of all, it found us the right partner in ONCAP, which will help us continue our momentum and build out our national platform.”
Mark MacTavish, ONCAP managing director, added, “We’re delighted to be partnering with Jason Volk and the entire Chatters team. Chatters is well-positioned to build upon its strong foundation, and we’re excited to support its growth.”
Steve Davis, managing director and head of the beauty and personal-care practice at Intrepid, commented, “We were impressed from Day One with the powerful Chatters store model, brand and culture—but perhaps most impressed with the entire Chatters team. It has established a national beauty-care platform in Canada and built a truly special business. I’m confident Chatters will continue to thrive with its new partner. We’re proud to have been a part of the Chatters team and look forward to seeing what Chatters and ONCAP can accomplish together.”
Founded in 1990 in Red Deer, Alberta, Chatters has more than 100 stores that span across eight Canadian provinces.
Chatters retails more than 5,500 professional-beauty products, including leading professional-haircare brands, as well as an increasing selection of skincare, bodycare and nailcare brands and accessories.
Each Chatters store provides a full-service salon that offers high-quality cuts, color and specialty treatments. Overall, there are about 900 chairs and more than 900 highly trained, educated stylists in the Chatters system.
The Chatters business model combines an excellent balance of retail sales and salon services revenue under one roof, resulting in a differentiated and powerful one-stop professional beauty-care format.
ONCAP, in partnership with operating company management teams, invests in and builds shareholder value in North American small- and mid-size companies that are leaders in their defined market niches and possess meaningful growth potential. ONCAP is the mid-market private-equity platform of Onex, one of the oldest and most successful private-equity firms committed to acquiring and building high-quality businesses in partnership with talented management teams. In total, Onex has about $21 billion (U.S.) of assets under management, including $5.9 billion (U.S.) of Onex capital in private equity and credit securities. Onex invests its capital directly through its investing platforms and as the largest limited partner in each of its private-equity funds.
Intrepid is one of the most-active merger-and-acquisition advisers in beauty and personal care. On July 14 it announced that another client, Too Faced Cosmetics—a high-growth color-cosmetics company and a portfolio firm of Weston Presidio Capital—sold a majority stake of the company to the General Atlantic private-investment firm. For more details, click here.
[Graphic courtesy of Business Wire]