Online retailer looking to raise £660m to fuel ambitious growth plans

Matthew Moulding

One of Manchester’s fastest growing firms is looking to raise more than £600m to fuel its ambitious growth plans.

The Hut Group is looking to raise £510m of debt, with a seven -year maturity, plus a five-year £150m revolving credit facility, which will be underwritten by Barclays, HSBC, Citi and Santander.

The deal is being described as step change in THG’s capital structure, enabling it to continue to build on its position as a market leader.

The ecommerce firm has grown sales from £80m in 2010 to well in excess of £1bn this year.

Two-thirds of revenues are generated internationally across Europe, Asia and the US.

THG has rapidly grown profitability to industry leading levels through its vertically integrated, technology-first consumer brand portfolio and technology services model.

In excess of 50% of sales are generated through its own brands including Myprotein (#1 online global sports nutrition brand) and a portfolio of seven prestige beauty brands across Skincare, Haircare & Cosmetics (ESPA, Christophe Robin, Ameliorate, Grow Gorgeous, Mio Skincare, Illamasqua and Eyeko).

Through its lookfantastic brand, the largest online-only specialist beauty retailer globally, THG sells over 850 prestige beauty brands such as Estee Lauder, MAC, Tom Ford, Bobbi Brown, Jo Malone and L’Oreal.

THG’s Wellness and Beauty brands are powered by the group’s ecommerce and operating platform, Ingenuity.

The platform is a unique ecosystem powering both THG’s sites and those for select consumer groups such as Nestle, P&G and J&J.

The Ingenuity ecosystem uniquely provides consumer groups with an end-to-end ecommerce solution across hosting (29 data centres), content creation (six studios), translation (Language Connect), payment options (50+), courier options (100+), affiliate marketing networks, brand events (hotels & country club), manufacturing and distribution centres (x12 globally, 2+ million sq. ft.).

Matthew Moulding, founder and chief executive of THG, said: “This is another major step forward for THG and a testament to the strength of the business we have built.

“These new debt facilities provide the company with significant investment capability enabling us to further drive our proposition across global markets, build brands of scale and continue to develop our leading technology, infrastructure and people.”

THG’s institutional shareholders include BlackRock, Old Mutual, Sofina, KKR and Balderton Capital.

Citi, Barclays and HSBC are acting as mandated lead arrangers and joint global coordinators with Santander, JP Morgan and National Westminster Bank as mandated lead arrangers and bookrunners on the financing.

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