THE WHAT? THG has announced the acquisition of premium U.S. skincare brand Perricone MD for $60 million in cash.
THE DETAILS Perricone MD will join THG’s beauty brand portfolio, including ESPA, Christophe Robin, Grow Gorgeous, Illamasqua, Mio Skincare, Mama Mio, Eyeko and Ameliorate.
Discussing the financial trajectory of the brand, THG said in a statement, “Perricone MD is profitable at the EBITDA level although THG anticipates minimal impact in the current financial year.
“As Perricone MD is transitioned by THG Ingenuity into a digital-first and global brand it is expected to be earnings accretive by the end of the financial year 2021, achieving double digit EBITDA margins consistent with previous THG Beauty brand acquisitions.”
THG will launch the brand on its own Ingenuity platform immediately after purchase.
THE WHY? The acquisition is thought to further strengthen THG’s leadership in speciality beauty retailing, with THG Founder, Chairman and CEO Matthew Moulding lauding the growth trajectory of the online skincare market.
Moulding said, “The online beauty and skincare sector is growing rapidly, and this acquisition enables us to further strengthen our position as the world’s leading pure-play speciality beauty brand owner and retailer.
“Perricone MD will now benefit from the powerful and sustainable infrastructure of THG Ingenuity, which has a proven track record of scaling revenues and enhancing the margins of acquired brands.”