Hut Group buys US-based Dermstore from Target for $350m
Fast-expanding online retailer and technology provider The Hut Group has announced the acquisition of Dermstore.com and major investment in THG Nutrition product development capability.
The $350 million acquisition of Dermstore LLC sees it buying the US “number one pureplay online retailer of prestige skincare and speciality beauty brands”, although the deal isn’t yet complete as it’s subject to regulatory approval in the US. Dermstore was owned by Target Corporation.
It has also acquired two of its long-standing UK-based nutrition product suppliers, Claremont Ingredients and David Berryman, for a combined purchase price of £59.5 million payable in cash.
Twenty-one-year-old Dermstore.com was established to provide online access to professional grade skincare in the US and has built a strong e-commerce business in the ensuing decades.
THG said that with its stated ambition to be the global digital partner of choice across the beauty industry, powering channel shift from offline to online, the acquisition boosts its strategy. It also “substantially enhances” its relationships with the key global beauty brands.
And it will be able to increase the scale of its beauty box business by accessing the Dermstore.com customer base, “which will in turn unlock incremental marketing revenue”. The acquisition also “provides the opportunity to accelerate the growth of THG's own beauty brands via a new and large US customer base”.
Chairman and CEO Matthew Moulding said: “A key driver behind the decision to list THG on the London Stock Exchange just over three months ago was to enable the group to make major global investments, such as Dermstore.com. Accessing capital through a London listing has enabled us to accelerate our growth plans and build out a global leadership position within the exciting beauty industry. We are delighted to welcome Dermstore.com into our growing portfolio of online beauty assets.”
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