THE WHAT? The Hut Group has announced the acquisition of online premium retailer Cult Beauty in a £275 million deal.
THE DETAILS The purchase of Cult Beauty, which owns Lookfantastic, will broaden the product offering of THG, with two thirds of Cult’s brands not currently listed on THG.
THG is set to purchase Cult Beauty from private shareholders, including Mark Quinn-Newall and co-CEO Alexia Inge. It is being made on a cash and debt-free basis.
Cult Beauty will retain its unique identity despite being part of THG.
THE WHY? The acquisition bolsters THG’s prowess in the digital-first sales world, while also offering an enhanced service to Cult Beauty brands due to its standing in the beauty e-commerce market.
THG Executive Chairman and Chief Executive, Matthew Moulding, said: “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.
“Cult Beauty’s first-to-market reputation makes the brand an exciting fit for our THG Beauty division.
“When retailing brands to consumers THG Beauty will run with two unique fascias within our main continents: THG will principally service customers within North America via our Dermstore and Lookfantastic brands, while in the UK, Europe, Asia and the Rest of the World the key brands will be Lookfantastic and Cult Beauty.”
He continued, “We anticipate fully migrating Cult Beauty onto the THG Ingenuity platform by the end of the year – within the first six months of acquisition – giving the brand access to the global digital features to underpin significant future growth.”