The Hut Group continues its acquisition spree, buying Claremont Ingredients Limited and David Berryman Limited in a combined supply-side cash deal of £59.5 million.
WHO: Claremont Ingredients is an independent UK flavor company based near Stoke on Trent in the West Midlands manufacturing and development laboratory for sports nutrition and beverages.
David Berryman Limited is a UK business with significant canning and bottling capabilities that supplies and develops fruit-based ingredients.
The Hut Group (THG) was founded in 2004 by Chief Executive Matthew Moulding and CFO John Gallemore, retails more than 8,000 brands, and operates more than 160 localized websites across 35 languages and 42 currencies. THG has become one of Europe’s largest online retailers of premium beauty brands. Other holdings include Eyeko, Illamasqua, ESPA, SkinStore, RY, Glossybox, Lookfantastic.com, and Grow Gorgeous, Ameliorate, Acheson & Acheson, Christophe Robin, and Perricone MD.
WHY: Claremont will play a key role in developing flavors tailored to local tastes across the globe. Together these acquisitions will enable THG to significantly accelerate the launch of further product innovation to global markets while increasing the proportion of THG Nutrition products wholly manufactured in-house.
Investment bank Jefferies said to the FT that the acquisition of Claremont Ingredients and David Berryman was similar to a move in 2018, when Hut Group bought Acheson & Acheson to speed up product development in its beauty division.
IN THEIR OWN WORDS: THG Chairman and CEO Matthew Moulding said: “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.”
“THG is committed to investing in and building best-in-class product innovation and manufacturing facilities in support of its THG Nutrition portfolio of global, digital-first brands including Myprotein, Myvegan, Myvitamins, Exante and Command. These acquisitions reflect a continuation of this vertical integration strategy, and will transform its speed to market and level of product innovation in its performance nutrition brands,” the company said.
The two manufacturing businesses “are highly complementary, with Berryman’s accelerating our capabilities in drinks range development. Claremont will play a key role in developing flavors tailored to local tastes across the globe,” the company said. “Together, these acquisitions will enable THG to accelerate the launch of further product innovation to global markets, while increasing the proportion of THG Nutrition products wholly manufactured in-house.”
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