LONDON — Fresh from a listing on the London Stock Exchange earlier this month, the Hut Group has added to its beauty stable, acquiring the skin-care brand Perricone MD brand for $60 million in cash.

Perricone MD will join a beauty stable that includes Espa, Christophe Robin, Illamasqua, Mama Mio, Eyeko and Ameliorate. THG also owns the beauty web site, which has been a long-term sales platform for Perricone MD.

THG said that in the last 12 months, Perricone MD has seen “very significant” sales growth on Lookfantastic, which had given it further confidence to buy the brand.

“The online beauty and skin-care 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,” said Matthew Moulding, founder, chairman and chief executive officer of THG.

“Perricone MD has a strong heritage, a loyal customer base and is a truly exciting addition to THG’s beauty portfolio.”

Founded in 1997 by the dermatologist Dr. Nicholas Perricone, Perricone MD is a science-led topical skin-care brand. The brand has approximately 100 product patents and is committed to no-animal testing, clean ingredients and gluten-free formulations.

Over the years, Perricone has added hydrogen water and CBD products. Dr. Perricone himself has spent the majority of his career railing against inflammation, publishing a series of books on his signature anti-inflammatory diet plan, which he touts as the secret to preventing skin aging.

His Perricone MD line also contains a range of supplements that have garnered a cult following over the years. That complements another big category at THG, which owns the sports nutrition company Myprotein.

THG said its beauty M&A strategy is to acquire “industry-leading brands and intellectual property, typically constrained by store-based retail channels and limited geographic reach.”

The group specializes in building end-to-end online operations for brands in the beauty and wellness categories and helping them to expand quickly around the world. THG aims to control every element of the consumer experience and deliver “materially accretive” margins as it takes brands directly to the consumer.

THG said it acquired 100 percent of Perricone MD for a 1x continuing sales multiple. The brand, it said, is profitable at the EBITDA level, although THG anticipates “minimal impact” on its own balance sheet in the current financial year.

As Perricone MD is transitioned 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.”

More than 50 percent of revenues across THG’s existing portfolio of seven existing beauty brands is now generated from direct-to-consumer sales globally online, the company said.

Immediately post acquisition, THG will launch Perricone MD on its THG Ingenuity technology platform, which it says offers trading, merchandising, marketing, real-time data, 14 THG fulfillment centers globally, seven content studios delivering digital brand building and content creation, in-house product development and manufacturing.

In line with THG’s broader strategy, the group said it remains focused on making investments “across technology, sustainability and infrastructure. The purpose of these investments will be to further enhance its end-to-end e-commerce platform, delivering digital and sustainability transformation programs for third party brands, in addition to powering THG’s own brands.”

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