The Hut Group is buying Dermstore.com, an online skincare retailer, from the US retail chain Target for £259m.
The acquisition of Dermstore will mean that 20% of The Hut Group’s sales will come from the US, compared with 13% before the Dermstore takeover.
“This is by far the biggest deal we’ve ever done at THG, reinvesting monies raised from our listing on the London Stock Exchange just over three months ago.” – Matthew Moulding, Founder, Chief Executive and Chairman of The Hut Group
The Times explain that: “The Hut Group’s shares rose by 62½p, or 9 per cent, to £7.62½, valuing Hut at £7.38 billion, above the £7.25 billion threshold that has triggered a £1 billion share windfall for Mr Moulding. Staff at the group also shared a £250 million pot when the £7.25 billion valuation target was reached a few weeks ago, although they are subject to a lock-up until March. Mr Moulding had given shares in the company to 74 staff over the past decade, turning secretaries, warehouse operatives and middle managers into millionaires when the company listed”.