SB Management, a wholly owned subsidiary of SoftBank Group, has partnered with The Hut Group, in a deal that will see it take a stake worth a total $2.33bn in the online retailer.
The deal will see SBM will take a 19.9 per cent stake in THG’s Ingenuity business, a subsidiary business and tech platform that specialises in taking brands director to consumers around the world.
SBM’s stake in the young business values the subsidiary at some £4.9bn.
SBM will also take a $730m stake in The Hut Group via share ownership.
Matthew Moulding, founder, executive chairman and CEO of THG said: “We are delighted to announce this financial and trading partnership opportunity with SoftBank, one of the world’s leading technology investors, recognising both the capability and inherent value of our proprietary technology platform, Ingenuity.
“The trading partnership opportunity is particularly exciting, providing Ingenuity with an unparalleled global growth opportunity. Furthermore, the combination of the acceleration of growth within Ingenuity and its separation into a distinct entity will enable THG to unlock significant incremental shareholder value over time.”
THG also today announced it has agreed to buy Bentley Laboratories, a New Jersey-based developer and manufacturer of skincare and haircare products.
The acquisition will enable THG to enhance the services provided to partner brands via its in-house ‘THG Labs’.
The group is expecting to raise around $1bn to fund acquisitions, including the $730m from SBM, as well as an institutional placing of up to £270m, with shareholder Sofina expected to participate in placing an amount of up to $85m.
Moulding added: “The capital raise will provide meaningful capital to accelerate our strategic growth ambitions across our whole business.
“The acquisition of Bentley materially increases our capability in beauty manufacturing and product development, and strengthens our position as the leading digital beauty business globally.”