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image captionMatthew Moulding s Hut Group runs more than 100 websites
Billionaire entrepreneur Matthew Moulding s Hut Group has snapped up online skincare firm Dermstore from US retail giant Target for £259m.
Shares in the company - whose websites include the Lookfantastic beauty products business - soared more than 9% on the news.
Since it floated in September at 500p, its shares have risen more than 50%.
That triggered a massive £1bn payout for the boss, one of the biggest paydays in UK corporate history.
The company has grown rapidly by snapping up skincare and lifestyle brands while also operating online platforms for other brands.
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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.
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 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 Hut Group to buy Dermstore for £259 million from Target Corp
The Hut Group to buy Dermstore for £259 million from Target Corp
The e-commerce company acquired Perricone MD in September.
THG will also buy David Berryman and Claremont Ingredients.
In an announcement on Tuesday, Hut Group (LON: THG) said it will buy Dermstore for £259 million in cash – a move that’ll help its beauty brands secure a broader share in the U.S market. Dermstore is a California-based online retailer for skincare and beauty products that is currently a subsidiary of Target Corp.
The Hut Group shares are currently trading at £7.38 that represents a little under 20% growth since its initial public offering in September. The stock had plummeted to as low as £5.84 per share in mid-October. At the time of writing, the British e-commerce company headquartered at Manchester Airport has a market cap of £7.01 billion.
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