The Hut Group (THG), the fast-growing British online retailer and technology company which floated on the stock market earlier this month, has acquired skincare and makeup brand Perricone MD for $60m in cash.
Founded in 1997 and previously owned by PE firm Lion Capital, US-based Perricone MD is described as a science-led topical skincare brand with formulations and supplements that address a broad range of dermatological needs. The brand has approximately 100 product patents and is said to be committed to no-animal testing, clean ingredients and gluten-free formulations.
Perricone MD will join the THG’s existing portfolio of beauty brands, which includes ESPA, Christophe Robin, Grow Gorgeous, Illamasqua, Mio Skincare, Mama Mio, Eyeko and Ameliorate.
THG stated that the brand was expected to be earnings accretive by the end of the financial year 2021, achieving double-digit EBITDA margins consistent with previous its acquisitions.
“Perricone MD has a strong heritage, a loyal customer base and is a truly exciting addition to THG’s beauty portfolio,” said Matthew Moulding, Founder, Chairman and CEO of THG.
“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.”
He added: “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.”
NAM Implications:
- Brand acquisition by The Hut Group has to be a continuing trend…
- …especially as supplier companies stumble through the recession.
- And given the continuing uncertainty, anything is possible…
