The Hut Group (THG) has announced it has bought US luxury skincare brand Perricone MD for $60m cash.
Founded in 1997, Perricone MD has approximately 100 product patents, with a focus on no-animal testing, ‘clean’ ingredients and gluten free formulations.
The acquisition will see it join THG’s portfolio of beauty brands, including ESPA, Christophe Robin, Grow Gorgeous, Illamasqua, Mio Skincare, Mama Mio, Eyeko and Ameliorate.
THG said it expects “minimal impact” in the current financial year, despite Perricone MD being profitable at the EBITDA level the group expects it to be earnings accretive by the end of the financial year 2021, achieving double digit EBITDA margins consistent with previous THG Beauty brand acquisitions.
THG will launch Perricone MD on its THG Ingenuity technology platform, which specialises in taking brands direct to consumers.
Matthew Moulding, founder, chairman and chief executive of THG, said: “Perricone MD has a strong heritage, a loyal customer base and is a truly exciting addition to THG’s beauty portfolio.
“The online beauty and skincare sector is growing rapidly, and this acquisition enables us to further strengthen our position as the world’s leading pure-play speciality beauty brand owner and retailer.”
He added: “Perricone MD will now benefit from the powerful and sustainable infrastructure of THG Ingenuity, which has a proven track record of scaling revenues and enhancing the margins of acquired brands.”
Perricone MD has been a long-term partner for its major beauty brand Lookfantastic, on which it has seen “very significant sales growth”, THG said.
