Buyout giant KKR set to lead £100m Hut deal
ONLINE health and beauty retailer The Hut is in the final stages of agreeing a deal to sell a 20% stake to a consortium of investors led by buyout firm KKR for £100m.
The Northwich-based company is one of the fastest-growing businesses in the region has made rapid progress in the past year – sales grew 34% to £176.4m and EBITDA 48% to £15m.
Its shareholders already include former Tesco chief executive Sir Terry Leahy and retired M&S boss Sir Stuart Rose, who are understood to be retaining their stakes in the company.
The investment group will be buying out some of the early backers of The Hut, many of whom are family and friends of co-founder and chief executive Matt Moulding, who launched the company 10 years ago with CFO John Gallemore after leaving Caudwell Group.
It is thought Mr Moulding will also be boosting his stake in The Hut to around 20%. Initially the company focused on entertainment – it acquired the zavvi brand out of administration – but the recent focus has been on health, grooming and lifestyle products. Its websites include myprotein.co.uk, iwantoneofthose.com. bikehut and myvitamins.com.
KKR is best known in the North West for its £955m acquisition of Pets at Home, which it has since led on to the stock market. Its other investments include Alliance Boots and webhosting business GoDaddy.
The deal should help boost The Hut’s growth further still, Earnings are on track this financial year to rise to £25m on sales of £250m.
