The Hut Group has forked out more than £300m to acquire three companies as the online fashion and beauty retailer pursues an aggressive growth plan after its stock market float.
The Manchester-based ecommerce group today said it will snap up skincare brand Dermstore from US retail giant Target for $350m (£259m).
It has also acquired two of its longstanding UK-based nutrition product suppliers, Claremont Ingredients and David Berryman Limited, for a combined total of £59.5m.
The deals highlight The Hut Group’s strategy of rapid expansion following its bumper stock market debut in London in September.
The retailer raised £1.88bn in the largest UK initial public offering since 2015. Shares rose more than five per cent this morning, taking its valuation to more than £7bn.
The Hut Group said the acquisition of Dermstore would contribute sales of roughly £135m this financial year. The deal is subject to regulatory approval in the US, which the company expects to be granted in January 2021.
Claremont and David Berryman Limited are expected to add sales of around £15m.
“A key driver behind the decision to list The Hut Group on the London Stock Exchange just over three months ago was to enable the group to make major global investments, such as Dermstore.com,” said chairman and chief executive Matthew Moulding.
“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.”
In October The Hut Group raised its full-year revenue guidance, saying it expected stronger sales during the crucial Black Friday and Christmas trading periods.
The retailer now expects revenue of between £1.48bn and £1.52bn.