29th Dec 2020 08:56
(Alliance News) - THG Holdings PLC on Tuesday agreed to acquire US-based online skincare and beauty brands retailer Dermstore.com for USD350 million in cash from major retailer Target Corp, subject to US regulatory approval.
The Manchester-based retailer, also known as The Hut Group, said the Dermstore.com acquisition will provide it with the opportunity to "accelerate the growth" of its own beauty brands via a new and large US customer base.
THG floated on the London Stock Exchange in September in the biggest initial public offering of 2020 and sells beauty, well-being, luxury and lifestyle products.
Antitrust clearance for the acquisition is expected to be received in late January 2021. The company said California-based Dermstore.com will add sales of GBP135 million and adjusted earnings before interest, tax, depreciation and amortisation of GBP3 million to its 2021 financial year.
In addition, THG acquired two of its long-standing UK-based nutrition product suppliers, Claremont Ingredients Ltd and David Berryman Ltd, for a combined purchase price of GBP59.5 million in cash.
The company said these acquisitions "will transform its speed to market and level of product innovation in its performance nutrition brands" and will "broaden the range of products" it can manufacture for its clients. The two acquisitions are expected to add sales of GBP15 million and adjusted Ebitda of GBP4 million in its 2021 financial year.
"We are also pleased to announce the acquisitions of Claremont and Berryman's. These two businesses are highly complementary, with Berryman's accelerating our capabilities in drinks range development for the individual brands within THG Nutrition. Claremont will play a key role in developing flavours tailored to local tastes across the globe. Together these acquisitions will enable THG to significantly accelerate the launch of further product innovation to global markets, while increasing the proportion of THG Nutrition products wholly manufactured in-house," said Chair & Chief Executive Matthew Moulding.
Shares in THG were up 2.3% at 715.80 pence in London on Tuesday.
By Zoe Wickens; [email protected]
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