Over the past five years, THG, formerly The Hut Group, engaged in a corporate spending spree that had few equals. One of Europe’s largest online retailers of premium beauty brands acquired a large clutch of high-profile brands and platforms, including Eyeko, Christophe Robin, Illamasqua, ESPA, Dermstore, the Target-owned US webstore, Cult Beauty, RY.com.au, Australia’s largest online haircare and skincare store, and more. Price tags ranged from US$60 million to US$350 million.

THG also launched a highly-publicised IPO on the London Stock Exchange in 2020, which became the UK’s largest ever tech IPO and raised AUD$3.49 billion. Those heady days peaked in 2021 when the company’s business was valued at US$12.4 billion.

The company has suffered major setbacks and has recently lost 70 per cent of its share price. In its 2022 full year preliminary results, THG reported operating losses had more than doubled to US$616.4 million. There had been a 2.2 per cent uplift in sales to AUD$4.09 billion as the UK, in particular, performed very well.

THG has received a preliminary, non-binding acquisition proposal from Apollo Global Management, the US private equity giant with US$512 billion under asset management. THG’s share price soared 44 per cent on the news.

Apollo’s initial proposal looks to acquire the entire share capital of THG and the financial heavyweight has until May 15th to make a firm offer to secure a deal.

It’s not the first approach by an interested party. Last year, a consortium of Belerion Capital Capital, King Street Capital Management and property billionaire Nick Candy, who is married to Aussie singer/actress Holly Vallance, also expressed interest in acquiring THG but didn’t follow through with a binding offer.

THG was founded in 2004 by CEO Matthew Moulding and COO John Gallemore and sells more than 8000 beauty, health and nutrition brands, operating 160 dedicated local websites.

The company is divided into three divisions – THG Beauty, which includes Lookfantastic, the world’s number one pure play platform for premium beauty products, THG Nutrition and THG Ingenuity.

Read the current issue of our digital magazine below:

Join the Conversation

1 Comment

  1. We adore reading your blog! Your unique perspective and real voice have an impact in the world. Keep writing, because your words matter. Thank you for being you!

    Thanks – TheDogGod

    Reply
Leave a comment

Your email address will not be published. Required fields are marked *