Online health and beauty retailer, The Hut Group (THG) has completed the acquisition of Dermstore, a US-based skincare and beauty ecommerce company, for £251m.
Established in 1999, Dermstore provides “professional grade skincare” throughout the US, and has reportedly been targeted by Matthew Moulding, executive chairman and CEO at the company, for a number of reasons.
The deal is expected to bring an additional £135m in sales to the group’s operations for the remainder of FY 2021, while also adding £3m to its adjusted EBITDA.
Moreover, the acquisition is intended to expand the Lookfantastic.com brand, while supporting the group’s marketing shift to purely online means.
Moulding deemed the move to be vital in accelerating the firm’s ambitions to be “the global digital partner of choice” in the beauty industry.
He added: “THG’s acquisition of the US number one pure-play online prestige skincare business means over 20% of the group’s sales are now within the US, presenting an exciting opportunity to further scale the wider group in a key global market.”
The update follows a December announcement where the group revealed its takeover plans for the deal that was subject to regulatory approval, conditions that have now been deemed satisfactory.