THG’s flagship distribution centre in Warrington, Cheshire. Credit: 50Stripes / Wikimedia Commons.
British e-commerce retailer The Hut Group (THG) has agreed to purchase Cult Beauty, an online retailer targeted on status magnificence manufacturers, for £275m ($381m) on a money and debt-free foundation.
THG purchased the corporate from personal shareholders, together with majority investor Mark Quinn-Newall, who can also be the co-founder of Net-a-Porter, and co-CEO Alexia Inge.
The firm mentioned that Cult Beauty would retain a ‘very clear id’ inside the THG Beauty portfolio.
According to THG, the acquisition is predicted so as to add nearly 200 manufacturers and 1.7 million prospects to THG Beauty.
THG expects to extend its gross sales for the subsequent full yr by £140m because of the takeover, including income of just about £10m.
Founded in 2008 by Alexia Inge and Jessica Deluca, Cult Beauty sells round 300 manufacturers throughout the skincare, haircare and cosmetics sectors, together with Charlotte Tilbury, Living Proof and Molton Brown.
The firm at the moment employs nearly 300 folks.
THG government chairman and CEO Matthew Moulding mentioned: “Cult Beauty’s first-to-market repute makes the model an thrilling match for our THG Beauty division.
“When retailing manufacturers to customers, THG Beauty will run with two distinctive fascias inside our major continents.
“THG will principally service prospects inside North America through our Dermstore and Lookfantastic manufacturers, whereas in the UK, Europe, Asia and the remainder of the world, the important thing manufacturers will probably be Lookfantastic and Cult Beauty.
“We anticipate totally migrating Cult Beauty onto the THG Ingenuity platform by the top of the yr, inside the first six months of acquisition, giving the model entry to the worldwide digital options to underpin important future progress.”
The acquisition comes a number of months after THG secured a $1.6bn funding from SB Management, a division of SoftBank.
Last December, THG agreed to accumulate Dermstore.com, a US-based pure-play online retailer of status skincare and speciality magnificence manufacturers, from Target for $350m in money.
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