The Hut Group has purchased beauty subscription business Glossybox.
Glossybox, founded in 2011 in Berlin, provides beauty box subscription services in 10 markets. The firm has offices in the U.K., Germany, France, Sweden and the U.S. The business was majority owned by Rocket Internet and Kinnevik Online. Industry sources said Glossybox has more than 50 million pounds in revenue and is growing at more than 30 percent annually. Terms of the deal were not disclosed.
“It was extremely important to us to find the right buyer for our brand; one that complements us and can use its retail know-how and technological capabilities to accelerate and strengthen Glossybox further in its journey of being a global, industry-leading brand and a well trusted beauty advisor for our engaged subscribers,” said Glossybox chief executive officer Caren Genthner-Kappesz.
The Hut Group said it has plans to evolve Glossybox’s Berlin presence into a technology hub for the entire company. One industry source said the business is considering acquisitions of beauty brands, and envisions building out an online beauty platform with online retail, sampling and content. The Hut Group has been seen in the running in beauty deals before, and was said to have bid on Paula’s Choice, which ultimately consummated a deal with private equity firm TA Associates.
The Hut Group is expected to grow Glossybox’s U.S. presence, sources said. The company already has a U.S. foothold with Skinstore.com. Glossybox also adds to the Hut Group’s portfolio of subscription businesses, which includes Lookfantastic, Beauty Box, MyGeekBox and PopInABox.
“This is another significant investment for The Hut Group,” said Matthew Moulding, founder and ceo of the Hut Group. “In Glossybox, we have acquired a great brand, with a solid and engaged customer base that, once powered through our platform and marketing infrastructure, should be capable of further significant growth.”
“At THG we have a relentless focus on both technology and beauty,” Moulding continued. “With our world-class proprietary e-commerce platform, we are confident we will continue to deliver strong growth and extend our global reach.”