This week The Hut Group acquired US skincare brand Perricone MD for £46 million to add to their growing stable of brands. This marks The Hut Group’s first acquisition since its stock market float last month. The brand will join The Hut Group’s growing portfolio of beauty brands which includes ESPA, Illamasqua, Eyeko, Ameliorate and Christophe Robin.
The Hut Group plans for Perricone MD to achieve double-digit EBITDA margins by the end of the 2021 financial year, in line with previous beauty acquisitions.
“Perricone MD has a strong heritage, a loyal customer base and is a truly exciting addition to THG’s beauty portfolio,” The Hut Group Chief Executive Matthew Moulding said.
“The online beauty and skincare sector is growing rapidly, and this acquisition enables us to further strengthen our position as the world’s leading pure-play specialty beauty brand owner and retailer.”
“Perricone MD was founded in 1997 and was one of the original science based brands to come out of the US with around 100 patents achieved over the years.”
The Hut Group will launch Perricone MD on its THG Ingenuity technology platform, which specialises in taking brands direct to consumers.
Matthew Moulding added: “Perricone MD will now benefit from the powerful and sustainable infrastructure of THG Ingenuity, which has a proven track record of scaling revenues and enhancing the margins of acquired brands.”
Perricone MD has been a long-term partner for its major beauty brand Lookfantastic, on which it has seen “very significant sales growth”, THG said.