The Hut Group (THG), the digital-first consumer beauty and wellness brand group announced the completion of an oversubscribed £1 billion capital raise, delivering a step-change to its balance sheet ahead of anticipated macro-economic and political changes arising from the general election and Brexit.
WHO: The Hut Group was founded in 2004 by Chief Executive Matthew Moulding and CFO John Gallemore, and retails more than 8,000 brands and operates more than 160 localized web sites 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.
WHY: The substantial capital raising enables THG to drive greater investment in its leading Beauty & Wellness brands and Ingenuity, its propriety, end-to-end e-commerce solution. The capital will also be used to invest in and enhance its freehold properties within its THG Events division, as well as ICON & THQ, the Group’s two landmark developments at Manchester Airport creating best-in-class content studios (270 sq. ft.) and offices (300 sq. ft.).
IN THEIR OWN WORDS: Matthew Moulding, founder and Chief Executive Officer of THG, said in a statement: “The expanded capital raising is a landmark achievement and provides an exceptional growth and investment platform for the business. The significant excess demand and new debt rating, and during the time of the general election, demonstrate the strength of THG’s business model and proposition and is further testament to the global model we’ve built. Our business continues to evolve with the demands of consumers, as we continue to invest across the Group to develop our people, infrastructure and particularly our proprietary e-commerce solution, Ingenuity.”
Ahmed Yeganeh, Managing Director for Large Corporate Banking, North Region, HSBC UK plc, said in a statement: “We have worked with THG for many years, supporting the business’s growth, investments in global infrastructure and acquisitions. We were delighted to act as Joint Global Coordinator in their first successful step into the institutional capital financing market and are looking forward to supporting their plans for the future.”
Na Wei, Managing Director, Barclays European Leverage Finance, said in a statement: “We were extremely impressed with the high level of market engagement and investor appetite for THG’s inaugural EUR600m capital market term loan issuance. This hugely successful benchmark transaction has cemented the Company’s future access to the capital market as it continues to grow and deliver its ambitious growth strategy.”
Sam Norton, Managing Director, Citi, said in a statement: “Unsurprisingly, THG has done it again—the success and significance of this 7-year maiden TLB issuance will be remembered as an inflection point in the Group’s history. It is yet another ringing endorsement of both the near term momentum and long term outlook of this uniquely positioned, global business and its best in class management team. Their leading equity story is now supported by a long term capital structure, fully aligned financing partners, and a fully-funded property strategy.”
William Abecassis, Head of Innovation Capital at BlackRock, said in a statement: “We are thrilled to be growing our investment in The Hut Group, a company that is at the forefront of retail digitalization. Their Ingenuity platform offers uniquely credible end-to-end solutions for global CPG brands seeking to transition to a digitally native footprint.”
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