The Hut Group readies for more acquisitions with £600m war chest
The beauty group is backed by Sir Terry Leahy and ex-Marks & Spencer boss Lord Stuart Rose.
The Hut Group has bagged a £600 million loan to help bankroll its rapid expansion and a potential acquisition spree.
The e-commerce retailer, which specialises in beauty and wellness products, has secured the revolving credit facility from a host of banks including Barclays and HSBC.
The Hut Group said it is looking at mergers and acquisitions in the beauty category, and wants to invest in more warehouses and its growing delivery network.
Matthew Moulding, founder and chief executive of The Hut Group, said: “We are delighted with the continued backing shown by our banking syndicate.
“This increase in our credit facilities through to 2021 is another important and powerful addition for the group and its business model, as we continue to deliver on our ambitions and drive forward our international growth.”
Founded in 2004, The Hut Group is backed by a number of retail veterans, including former Tesco chief executive Sir Terry Leahy and ex-Marks & Spencer boss Lord Stuart Rose.
The group also counts the world’s biggest asset manager Blackrock as a shareholder and sold a 19.2% stake to private equity giant Kohlberg Kravis Roberts for £100 million in 2014.
The group sells third-party branded or own-label health and beauty products across websites including Myprotein, HQ Hair, Lookfantastic, The Hut and Mankind.
Barclays’ Martin Souter said the funding will provide The Hut Group with “significant firepower” as it moves forward with M&A plans.
The Hut Group has snapped up Mio Skincare, Grow Gorgeous and, most recently, it bought the eye cosmetics brand Eyeko.