The Hut Group (THG) announced this week that it has agreed to acquire Bentley Laboratories, a US-based developer and manufacturer of prestige skincare and haircare products, in a deal worth $255m.
THG is already a key customer of Bentley which manufactures its Perricone MD brand.
The Manchester-based firm, best known for its online beauty and technology activities, said the acquisition will enable it to bring the production of Perricone and other THG brands in-house. It is also expected to help the business to accelerate new product development.
As Bentley already partners with over 70 beauty companies across the world and THG said the deal will provide it with an opportunity to improve the service to these brands.
Bentley is expected to contribute sales of around $77m and adjusted EBITDA of around $15m in the 2022 financial year.
Matthew Moulding, Chairman and Chief Executive of THG said: “The US is an important growth market for THG. This investment within our THG Labs division supports the Group’s vertical integration strategy, while further deepening our close and important relationships with brand owners across the global beauty industry.
“Bentley provides THG with US-based, pre-eminent in-house skincare and haircare new product development capabilities and manufacturing, which will be leveraged across THG’s expanding own beauty brand portfolio, as well as THG’s partner brands across Ingenuity and Beauty to embed THG even more deeply as a strategic partner to clients.”
The transaction is expected to be completed within 30 days.
NAM Implications:
- Improvement in internal efficiencies…
- …and access to the additional footprint.
- A no-brainer?
- Time for rivals to reassess relative competitive appeal in respective categories?
