The Hut Group buys US online skincare retailer Dermstore in £259m deal

The Hut Group (THG) has snapped up US online skincare retailer Dermstore for 350 million dollars (£259 million) as it continues its expansion strategy.

The group, which owns brands including Glossybox and MyProtein, also told investors on Tuesday that it has bought UK nutrition product suppliers Claremont Ingredients and David Berryman for £59.5 million.

THG has grown rapidly in recent years by purchasing skincare and lifestyle brands while also operating online platforms for other brands.

Shares in the company have steadily improved since being valued at £5.4 billion in one of the year’s biggest stock market floats in September.

THG said it hopes the acquisition of Dermstore from US retail giant Target will help to enhance its relationships with key global beauty brands.

It said it also expects to grow its beauty box business through Dermstore’s customer base and marketing presence.

Claremont Ingredients operates an independent flavour manufacturing and development laboratory for sports nutrition and beverages, while the David Berryman business supplies and develops fruit-based ingredients.

The group said its deals to buy Claremont and David Berryman will help improve its product innovation among its sports nutrition portfolio while continuing to secure revenue from third party customers.

THG said it expects the Dermstore acquisition to improve earnings next year by around £3 million, while the nutrition suppliers deal will improve earnings by around £4 million for the period.

Earlier this month, THG raised its sales forecast for the second time in three months.

Chairman and chief executive Matthew Moulding said: “A key driver behind the decision to list THG on the London Stock Exchange just over three months ago was to enable the group to make major global investments, such as Dermstore.com.

“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.”

Shares moved 3.3% higher to 723.4p in early trading on Tuesday.