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THG has announced it has agreed to acquire Cult Beauty, the UK based online beauty retailer, for a total consideration of £275m.
Cult Beauty is the authorised online retailer of over 300 third party brands across skincare, haircare and cosmetics, including Charlotte Tilbury, Drunk Elephant and Huda Beauty.
Currently less than 50% of Cult Beauty’s sales are international, representing an opportunity to accelerate overseas growth through the THG Ingenuity platform.
The beauty retailer is expected to contribute sales of £60m and adjusted EBITDA of £3m for the remainder of the financial year.
Matthew Moulding, executive chairman and CEO of THG, said: “Cult Beauty is frequently the partner of choice for emerging indie brands due to its personalised, content-led approach and enthusiastic consumer base who are continually seeking new, innovative solutions to complement their beauty routines.
“We anticipate fully migrating Cult Beauty onto the THG Ingenuity platform by the end of the year (within the first six months of acquisition), giving the brand access to the global digital features to underpin significant future growth.”
