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Friday 14 December 2018

The Hut Group readies up for more deals

The company said that it has increased the size of its revolving credit facility from £345 million to £515 million.

Glossybox and Wendy Rowe The Edit products
Glossybox and Wendy Rowe The Edit products

By Ravender Sembhy, Press Association City Editor

Online health and beauty retailer The Hut Group has amassed £515 million as it gears up to continue a recent acquisition spree.

The company said that it has increased the size of its revolving credit facility from £345 million to £515 million, with the cash to be used for strategic initiatives including “possible mergers and acquisitions”.

The Hut Group, backed by the likes of former Tesco chief executive Sir Terry Leahy and ex-Marks & Spencer boss Lord Rose, has recently acquired Australian online haircare brand RY, skincare group ESPA as well as Glossybox in the UK.

Matthew Moulding, The Hut Group’s chief executive, said: “This year has seen a real acceleration in investment for THG, especially across Beauty, infrastructure, technology and talent.

“This substantial new credit facility is another important step for the group and provides us with even more firepower to pursue our ambitions for further significant international growth.”

Earlier this year, Old Mutual Global Investors invested £125 million into the retailer by way of equity, valuing the group at a reported £2.5 billion.

The new facility will see existing lenders HSBC, Barclays, Santander, Lloyds, RBS, Bank of Ireland and Silicon Valley Bank joined by Citibank, AIMCo (Alberta Investment Management Corporation) and JP Morgan.

The Cheshire-based firm, which has been linked to a possible stock market flotation, reported a 50% increase in sales last year to £501 million, with underlying earnings rising 67% to £50 million.

Press Association

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