Private equity firm Kelso Group Holdings has acquired further shares in THG as it praised “the significant intrinsic value of the nutrition business”.
In a statement, Kelso identified a shift in consumption away from chocolate and sugar to health and nutrition, and identified 12 global food and beverage companies, including Nestlé, Coca-Cola and Pepsi, that are overly reliant on the sale of less healthy products.
Kelso highlighted the value of THG’s nutritional business, particularly MyProtein and its direct-to-consumer digital model.
In its full-year results ending December 2022, THG reported sales of its nutrition business, including MyProtein, as being circa £675m.
Kelso said any offers for a THG buyout should reflect the value its nutritional business brings to the brand and that THG must consider a separation of MyProtein in case an acceptable offer is not forthcoming.
The private equity firm said: “Kelso believes that THG’s nutritional business is likely ultimately to end up being owned by one of the large global food and beverage companies, all of which have already begun investing in nutritional, wellness and healthier assets to improve the mix of their sales between nutrition and chocolate or sugar products.
“All those transactions again support Kelso’s sum-of-the-parts view of THG.”
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