Hut Group buys trio including Dermstore.com for $430m
Online beauty and health retailer continues expansion following September IPO
The Hut Group has agreed to buy a trio of companies for about $430m as the UK online beauty and health retailer continues to expand since listing in London in September.
The Manchester-based group said on Tuesday it had agreed to acquire skincare retailer Dermstore.com from US retailer Target for $350m. The all-cash deal will add roughly $180m to The Hut Group’s sales next year and requires approval from US antitrust authorities, which the company expects to receive late next month.
The Hut Group also said it was buying Claremont Ingredients and David Berryman for £59.5m. The two UK-based companies, which supply the group with nutrition products, will bring sales of about £15m in 2021 the group said.
“Accessing capital through a London listing has enabled us to accelerate our growth plans and build out a global leadership position within the exciting beauty industry,” said Matthew Moulding, the founder and chief executive of Hut Group.
Earlier in December, the group increased its full-year revenue forecast, the second time it had done so since listing in September, to a £1.57bn-£1.60bn range compared with £1.48bn-£1.52bn previously.
The company raised £920m for itself in its initial public offering, and an additional £961m for its shareholders.