Houlihan Lokey Advises NAK Hair

Houlihan Lokey is pleased to announce that NAK Hair has been acquired by Adamantem Capital. The transaction closed on May 31, 2022.

NAK is an Australian-owned haircare company supplying a range of on-trend haircare products principally to the professional market (i.e., hair salons). Founded in 2003, NAK is now Australia’s third biggest professional haircare company and sells its products in over 20 countries across EMEA, Asia, and North and South America. In recent years, NAK has strengthened its market position in Australia on the back of its distinctive product range and its disruptive salon engagement model, which leverages technology to facilitate stylist education to drive product sales. The company is based in Brisbane, Australia, with over 100 employees.

Adamantem is an Australian private equity firm with market-leading capabilities in responsible and impact investing. Founded in 2016, Adamantem manages A$1.6 billion in assets across Australia and New Zealand. Adamantem partners with management teams with a commitment to delivering outstanding financial returns alongside positive environmental, social, and governance outcomes. NAK’s range of vegan-friendly and sustainable products aligns with Adamantem’s investment values. Adamantem is expected to try to grow NAK organically and via M&A. It will also seek to expand NAK’s presence offshore, in particular through the sale of its products into the world’s biggest consumer market, the United States.

Notably, Houlihan Lokey navigated transaction diligence through a period of significant lockdowns across Australia in the back half of 2021. Despite NAK’s salon-heavy business model being significantly impacted by these lockdowns, Houlihan Lokey was able to create an analysis that showed NAK’s ability to outperform during this period. Ultimately, this was critical in convincing buyers of the strength of the NAK business and broader haircare industry.

Houlihan Lokey served as sellside advisor to NAK Hair. This transaction highlights the team’s continued expertise in the beauty and personal care and broader consumer retail spaces.