British e-commerce company, The Hut Group (THG) has acquired UK-based online beauty retailer, Cult Beauty for £275 million.
The group bought the digital platform from private shareholders, including co-chief executive officer, Alexia Inge and majority investor, Mark Quinn-Newall, who had also co-founded Net-a-Porter, as reported by WWD.
"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,” said THG executive chairman and chief executive officer, Matthew Moulding.
Part of the deal's appeal to THG was Cult Beauty’s close-knit partnerships with independent beauty labels which are not currently available on its e-commerce platform. It currently stocks over 300 brands, including the likes of Drunk Elephant, Charlotte Tilbury, and Huda Beauty – two-thirds of which have no other presence on THG existing beauty sites.
Not to mention the business also boasts a network of 1.7 million engaged beauty shoppers and 1.6 million Instagram followers.
The idea is to keep Cult Beauty’s separate branding and identity intact, and use the THG infrastructure to spearhead international expansion — as less than 50 per cent of its 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."
The company predicts that following the transition, it can help increase Cult Beauty sales from £60 million to £140 million within 18 to 24 months.
Main image source: glamourmagazine.co.uk.
