British e-commerce group THG has agreed a deal to acquire prestige skincare brand Biossance from US biotechnology group Amyris, which recently commenced Chapter 11 proceedings.
At an auction last week, THG was declared the successful bidder for Biossance’s assets, IP and inventory, which have a book value of $29m.
THG is paying $20m for the brand, with the deal expected to close later this month and integration completed in the first quarter of next year.
Since it was founded in 2015, Biossance has generated global revenues of around $300m, with its products currently stocked in over 1,600 stores globally, including Sephora, Harrods, Space NK, Douglas and Selfridges. Its range of cleansers, creams and serums are also sold online through its own website and via THG’s Look Fantastic and Cult Beauty sites.
Matthew Moulding, Chief Executive of THG, commented: “We are delighted to acquire the pre-eminent skincare brand Biossance. The technology-led, clean chemistry formulations resonate with consumers globally, evidenced by a strong performance on our own retail sites.
“We have significant experience in prestige skincare as an innovator and manufacturer, and through our own brand portfolio, including Perricone MD and ESPA. We’re incredibly fortunate and excited to secure this opportunity to work with the Biossance team and further build on the brand’s strong awareness across the US.
“The fit within THG is perfect, with Biossance already generating c. $2m in revenue across our retail sites in the past 12 months. Integration on to the Ingenuity platform will commence as soon as the deal is finalised.”
NAM Implications:
- Effectively road-tested on THG retail sites.
- $20m purchase of $300m sales turnover globally.
- Watch this space…
