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Highlights
- Strategic Acquisition: Huddled Group secures the remaining 25% stake in Boop Beauty for £100,000 in shares.
- Growth Plans: Full ownership enables Huddled to allocate more resources for inventory and marketing to drive Boop Beauty’s expansion.
- Leadership Continuity: Boop Beauty founder Yasmine Amr will remain actively engaged as a non-executive director.
Huddled Group (LSE:HUD), an AIM-listed online retailer, announced on Monday that it has acquired the remaining 25% stake in Boop Beauty, a direct-to-consumer platform specializing in discounted cosmetics. The purchase price of £100,000 will be settled through the issuance of 3.2 million new Huddled shares.
Details of the Acquisition
The acquisition follows discussions with Boop Beauty founder Yasmine Amr, who established the business after her tenure as in-house counsel at L'Oréal. Huddled previously held a 75% stake in Boop Beauty, and this move brings the platform fully under its ownership. The newly issued shares will be subject to a six-month lock-in period, followed by a 12-month orderly market agreement upon admission to AIM trading, no later than May 27, 2025.
Huddled explained that the decision to secure full ownership was driven by Boop Beauty’s promising trading performance to date. The company sees significant potential in allocating additional resources to the business for growth.
Strategic Rationale
Huddled noted that complete ownership of Boop Beauty would justify increased investments in critical areas such as inventory and marketing. These investments are seen as essential to capturing the market opportunities in the cosmetics sector, where Boop Beauty addresses a growing niche by selling surplus inventory directly to consumers at discounted rates.
"The acquisition represents a strategic step in Huddled accelerating Boop Beauty's growth trajectory," the company stated. "Exchanging the remaining 25% of Boop Beauty for Huddled Group shares allows Yasmine [Amr] to stay actively engaged whilst full ownership will enable Huddled to justify making additional investments."
Continued Leadership Role for Yasmine Amr
Boop Beauty founder Yasmine Amr will continue to play an integral role in the business, transitioning to a non-executive director position. Her continued involvement aligns with Huddled’s vision for Boop Beauty, ensuring leadership continuity and leveraging her expertise in the cosmetics industry.
Expanding Opportunities
Boop Beauty operates in a sector where the annual surplus inventory from luxury beauty brands is valued at billions. By offering these products directly to consumers, the platform not only reduces waste but also addresses consumer demand for affordable luxury cosmetics. Huddled’s additional investments in Boop Beauty aim to expand its reach and market share within this lucrative niche.
Looking Ahead
This acquisition underscores Huddled Group’s commitment to strategic investments that enhance its portfolio and drive long-term growth. By securing full ownership of Boop Beauty, the company is well-positioned to capitalize on market opportunities, supported by targeted resource allocation and leadership continuity. Further updates on Boop Beauty’s performance and growth trajectory are anticipated as Huddled intensifies its efforts to scale the business.
