4th Aug 2021 09:34
(Alliance News) - THG PLC will acquire online makeup retailer Cult Beauty for GBP275 million, the e-commerce firm reported on Wednesday.
THG, which trades as The Hut Group, said Cult Beauty is expected to contribute sales of around GBP60 million and adjusted earnings before interest, tax, depreciation and amortisation of around GBP3 million for the remainder of financial year 2021. For the following financial year, it is anticipated to contribute sales of about GBP140 million and adjusted Ebitda of around GBP10 million.
Founded in 2008 by Alexia Inge and Jessica DeLuca, Cult Beauty uses an e-commerce platform to stock around 300 independent makeup brands, such as Charlotte Tilbury, Living Proof and Molton Brown.
"Cult Beauty is frequently the partner of choice for emerging indie brands due to its personalised, content-led approach and enthusiastic consumer base who are continually seeking new, innovative solutions to complement their beauty routines," said THG Chief Executive & Executive Chair Matthew Moulding.
"Cult Beauty's first-to-market reputation makes the brand an exciting fit for our THG Beauty division."
The acquisition of the beauty e-commerce firm, which was first reported by Sky News, comes two months after THG struck a deal with Japanese technology investor SoftBank Group Corp that made USD1 billion available for strategic acquisitions.
THG also on Wednesday said it is trading ahead of management expectations on a constant-currency basis. It raised its annual sales growth guidance to between 35% and 38%, or GBP2.18 billion to GBP2.23 billion. Sales growth was previously expected between 30% and 35%.
Manchester-based THG posted 2020 revenue of GBP1.61 billion, following its initial public offering in September last year.
Shares in THG were up 2.6% at 594.70 pence on Wednesday morning in London.
By Will Paige; [email protected]
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