Beauty products maker Coty Inc said it would buy ghd, a high-end hairstyling appliances brand, from private equity firm Lion Capital LLP for about 420 million pounds.

Coty, which owns hair colour brands such as Wella and Clairol, became the global No. 2 in hair colour and styling products through its $12.5 billion acquisition of Procter & Gamble's perfume, hair care and make-up businesses in October.

London-based ghd, whose name stands for "good hair day," generated 178 million pounds in revenue in fiscal year 2016.

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The business will become part of Coty's Professional Beauty unit, which services salon owners and professionals in hair and nail care, and will be a standalone business led by its current Chief Executive Anthony Davey and team, Coty said on Monday.

The all-cash deal, scheduled to close by the end of 2016, is expected to immediately add to Coty's earnings, the company said.

Sky News first reported the deal.

Coty said last year it would shift its executive team to London, as part of its transformation into a global beauty products maker.

Lion Capital and ghd are being advised by Rothschild & Co and Proskauer Rose LLP. Skadden Arps Slate Meagher & Flom LLP is the legal adviser to Coty.