The deal will support Matthew Moulding’s company’s move to become the beauty sector’s leading digital partner
British tech giant The Hut Group (THG) has acquired US beauty retailer Dermstore in a deal that is expected to fetch US$350m.
The strategic move will support THG’s vision to become the beauty industry’s leading digital partner as online shopping becomes more popular among consumers.
Meanwhile, Dermstore’s subscription box service will allow THG to increase the scale of its beauty box business.
A subsidiary of Target, the brand’s inception was to bring professional grade skin care to the masses.
It now stocks more than 100 brands across skin, hair and body care, as well as colour cosmetics and male grooming.
Linking with the US retailer will also give THG’s beauty brands, such as ESPA, Illamasqua and recently-purchased Perricone MD, a leg up in the US market.
The beauty owner was one of the few success stories of 2020.
Following its registration on the London Stock Exchange in August, with a £4.5bn equity value, the city’s biggest in 2020, the Manchester-based group raised its revenue guidance for 2020 to between £1.48bn and £1.52bn, up from its previous guidance of £1.43bn, according to Business Live.
However, THG’s CEO and founder Matthew Moulding received criticism last year for taking home one of the UK’s biggest payouts in corporate history following a spike in his company’s share price.
With a share price at £6.33, the 44-year-old was able to take home an eye-watering £840 bonus.