Ambitious Hut Group set to swoop for UK2 for £50m

Matthew Moulding

Cheshire-based digital retailer The Hut Group is poised to swoop for web-hosting firm UK2 Group in deal believed to be worth around £50m, according to reports.

It is understood the deal is being lined up as the ambitious Northwich-headquartered firm bids to  accelerate its international expansion plans.

Sky News said The Hut Group is in advanced discussions to buy UK2 Group from the private equity firm LDC.

Talks between the two sides are said to have been taking place for some time, and could result in a transaction being struck within days.

However, sources said there was no guarantee that LDC and The Hut Group would strike a formal agreement.

The Hut Group counts the former Tesco boss Sir Terry Leahy and ex-Co-op Group chief executive Richard Pennycook among its shareholders.

It owns websites such as Grow Gorgeous, IdealShape and Myprotein – fast-growing digital platforms.

These have seen The Hut Group to become one of the UK’s most eye-catching technology growth stories.

The takeover of UK2 would allow The Hut Group to speed up the expansion of its proprietary technology platform as it extends its retail offering to a string of new international markets, sources said.

UK2 has been part-owned by LDC – the buyout division of Lloyds Banking Group – since 2011, operating web infrastructure brands such as 100TB and MidPhase.
LDC is said to be planning to retain one element of UK2’s operations.

The Hut Group was established in 2004 by Matthew Moulding, who is its chief executive, and John Gallemore to provide a technology platform for retailers requiring e-commerce services. It employs more than 3,000 people.

The Hut Group and LDC have not commented.

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