The Hut Group (LON: THG) To Acquire Beauty Retailer Dermstore From Target Corp

2 min read | December 30, 2020 02:32 AM AEDT | By Team Kalkine Media

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The Hut Group (LON: THG) To Acquire Beauty Retailer Dermstore From Target Corp

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Summary

The Hut Group has agreed to purchase Dermstore, a US online retailer of skincare and beauty products, for about $350 million in cash

The acquisition will help THG become the global player in the digital marketplace for the beauty products segment.

Apart from Dermstore, THG has also added two of its UK-based nutrition product providers to its kitty by acquiring Claremont Ingredients Ltd and David Berryman Ltd

British e-commerce firm The Hut Group- THG Holdings Plc (LON:THG) has agreed to purchase Dermstore.com, a US online skincare and beauty products company, for about $350 million in cash, from US retail firm Target Corporation.

The deal will enable THG to have access to the Dermstore.com consumer base, which will help the firm to expand the footprints of its beauty products, making THG the global player in the digital marketplace for the beauty products segment. Besides, the deal will boost the company’s marketing revenue. However, the acquisition is subject to regulatory approvals in the US.

In another development, THG has also purchased UK-based nutrition product providers -- Claremont Ingredients Ltd and David Berryman Ltd (Berryman’s) -- for an aggregate amount of £59.5 million in cash.

This acquisition will help THG to strengthen the portfolio of its global online brands, which includes Myvegan, Myvitamins, Myprotein, Exante, and Command. As part of the deal, Berryman’s and Claremont will continue to produce revenue from third party clients, who will gain from investment and mass tracing benefits.

Also read: Stellar Debut of the Hut Group- Can It End the IPO Dry Spell Of 2020?

Commenting on the acquisition of nutrition product providers, Matthew Moulding, the chairman and the chief executive officer at THG, said the company is happy to form a collaboration with Claremont and Berryman’s. These two businesses are going to aid Berryman and will help in accelerating the firm’s capabilities in drinks range expansion for the individual brands under the THG Nutrition.

He added that Claremont would play a crucial role in creating flavours designed for local tastes around the world. Collectively these assets will facilitate THG to substantially step up the launch of additional product modernisation to global markets while expanding the percentage of THG Nutrition products in the market.

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