Anacacia backs Australia's Pump Haircare

The size of the investment was not disclosed, but Anacacia typically invests A$15-60 million ($11-44 million) per transaction in profitable businesses with annual revenues of A$20-300 million. The private equity firm is currently deploying its third middle-market fund, which closed at A$300 million in 2018.

“After COVID-19 accelerated our already fast-growing e-commerce sales in 2020, we reached a tipping point. We needed support from a partner with experience in helping SMEs get to the next level,” said Natasha Jay, founder of Pump Haircare, explaining what led her to Anacacia.

Jay, a hairdresser by training, established the company in 2017 after being diagnosed with endometriosis. She tried numerous products to stimulate thicker hair growth but found nothing that met her needs in terms of plant-based ingredients. Jay gave test products to her hairdressing clients and this led to the launch of Pump Growth Shampoo and Pump Growth Conditioner.

The online response was positive, and sales quickly grew. Pump Haircare has more than 40 products, each based on a proprietary formula, that are sold in eco-friendly packaging. The company has customers in over 100 countries and its products are stocked in 200 salons. Most sales come through Pump Haircare’s own direct-to-consumer e-commerce website.

“Today, women want salon-quality haircare products with the perfect balance of all-natural ingredients and product efficacy. In just three years, the business grew from a traditional start-up in my lounge room to a large logistics facility focused on delivering our wonderful customers premium products and service at great value,” Jay added.

Jeremy Samuel, a managing director at Anacacia, noted that Pump Haircare has the potential to become a premium household name.

Beauty e-commerce is gaining traction in Australia, with some local players among the beneficiaries. Adore Beauty, an online beauty products retailer backed by Quadrant Private Equity, recently completed a A$269.3 million IPO and has a market capitalization of around A$625 million. Adore distribute third-party brands but is looking to launch private label brands.

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• Topics
• Australasia
• Buyouts
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• Australia
• Anacacia Capital