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PDC Acquisition Propels Company Into New Categories

PDC's latest acquisition opens up opportunities for growth in the U.S. and abroad.

PDC Brands is on the acquisition trail again, adding U.K.-based Original Additions to its portfolio. The terms of the deal were not disclosed. This is PDC’s eighth acquisition since the company partnered with private-equity firm Yellow Wood Partners in 2012.

“We toured around retail shops in the U.K. and one of the things we noticed was the fantastic product assortment from Original Additions,” said PDC’s chief executive officer James Stammer, who saw correlations between Original Additions and PDC’s category leaders such as Dr. Teal’s and Bodycology. “This is a great strategic fit.”

Industry sources estimate Original Additions has sales exceeding $75 million.

Specifically, this latest purchase opens up opportunities for PDC to enter the expanding artificial eyelash category with Original Additions’ Eylure London, the number one cosmetics lash brand in the U.K.

“According to Nielsen, they have 77 percent of the eyelash business in the U.K.,” said Stammer. “They are driving category growth.” Eylure has a modest, but expanding footprint in the U.S. in retailers such as Target, Ulta Beauty, Kohl’s and Wal-Mart that Stammer expects to boost. “The point of sale is strong and the category is growing. We can help build it here. Imagine what we can do with our retail relationships and distribution.” Recently, Eylure added lashes created in tandem with makeup artist and social media influencer Vegas Nay.

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Two other businesses under the Original Additions umbrella include Elegant Touch, a line of artificial nails which owns 50 percent of the business in the U.K., and Salon Systems, which provides lash, nail and waxing products to the professional beauty business. Stammer said the partnership with the salon industry will keep the newly formed company ahead of beauty trends.

PDC’s portfolio encompasses Dr. Teal’s, Body Fantasies, BOD Man, Bodycology, Calgon and Cantu, the fastest-growing brand in the U.S. multicultural hair-care market, according to industry data. Stammer said there is international expansion potential for those brands abroad. “It is a nice strategy fit both ways,” said Stammer noting that in addition to U.S. growth for Original Additions, PDC’s trademarks have bountiful potential abroad.

PDC will retain Original Additions staff including Simon Zussman, Original Additions managing director. “I have great admiration for Simon – he has built a powerhouse cosmetics brands through creativity, innovation and an unwavering commitment quality,” Stammer said. “We are buying their expertise and creativity.” PDC will also assume the Original Additions offices making it a European headquarters for PDC. Stammer said he expects PDC to make more acquisitions within the next 18 months.