08.04.21
British e-commerce company The Hut Group has agreed to purchase online beauty retailer Cult Beauty for £275 million ($382.91 million).
UK-based Cult Beauty stocks over 300 brands, including Drunk Elephant, Charlotte Tilbury, Huda Beauty and Kate Somerville—many of which have no other presence of THG existing beauty sites. The company also boasts a network of 1.7 million engaged beauty shoppers and 1.6 million Instagram followers.
“Cult Beauty is frequently the partner of choice for emerging indie brands due to its personalized, content-led approach and enthusiastic consumer base who are continually seeking new, innovative solutions to complement their beauty routines,” commented Matthew Moulding, CEO of THG.
THG’s plan is to keep Cult Beauty’s separate branding and identity intact, and use the THG infrastructure to spearhead international expansion — as less than 50 percent of Cult Beauty’s sales are from overseas.
There’s also an opportunity to offer Cult Beauty’s brand partners access to THG’s “beauty box subscription business, digital marketing services, and manufacturing know-how.”
“We anticipate fully migrating Cult Beauty onto the THG Ingenuity platform by the end of the year (within the first six months of acquisition), giving the brand access to the global digital features to underpin significant future growth," Moulding added.
THG predicts that Cult Beauty will add around £140 million ($195.2 million) of net sales to its business in 2022.
UK-based Cult Beauty stocks over 300 brands, including Drunk Elephant, Charlotte Tilbury, Huda Beauty and Kate Somerville—many of which have no other presence of THG existing beauty sites. The company also boasts a network of 1.7 million engaged beauty shoppers and 1.6 million Instagram followers.
“Cult Beauty is frequently the partner of choice for emerging indie brands due to its personalized, content-led approach and enthusiastic consumer base who are continually seeking new, innovative solutions to complement their beauty routines,” commented Matthew Moulding, CEO of THG.
THG’s plan is to keep Cult Beauty’s separate branding and identity intact, and use the THG infrastructure to spearhead international expansion — as less than 50 percent of Cult Beauty’s sales are from overseas.
There’s also an opportunity to offer Cult Beauty’s brand partners access to THG’s “beauty box subscription business, digital marketing services, and manufacturing know-how.”
“We anticipate fully migrating Cult Beauty onto the THG Ingenuity platform by the end of the year (within the first six months of acquisition), giving the brand access to the global digital features to underpin significant future growth," Moulding added.
THG predicts that Cult Beauty will add around £140 million ($195.2 million) of net sales to its business in 2022.
