The Hut Group acquires US skincare retailer and UK nutrition suppliers

THG has agreed to purchase Dermstore.com for $350m (£259m) from US retailer Target, subject to regulatory approval in the US.

Dermstore.com is an online pureplay retailer for premium, professional-grade skincare products and specialist beauty brands.

The acquisition will aid THG’s ambition to become the “global digital partner of choice” in the beauty industry by growing its relationship with international brands.

THG also plans to expand its beauty box business, Glossybox, and accelerate the growth of its own-brands using Dermstore’s customer base.

The tech platform has also plugged major investment into two of its nutritional suppliers.

For a combined amount of £59.5m, THG has acquired flavour manufacturers Claremont Ingredients and fruit-based ingredients specialists David Berryman, which also has canning and bottling operations.

The two acquisitions will aid THG’s product innovation and manufacturing facilities for its performance brands such as Myprotein.

THG chair and chief executive Matt Moulding said: “A key driver behind the decision to list THG on the London Stock Exchange just over three months ago was to enable the group to make major global investments such as Dermstore.com. 

“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. 

“We are delighted to welcome Dermstore.com into our growing portfolio of online beauty assets.

“We are also pleased to announce the acquisitions of Claremont and Berryman. 

“These two businesses are highly complementary, with Berryman accelerating our capabilities in drinks range development for the individual brands within THG Nutrition. 

“Claremont will play a key role in developing flavours tailored to local tastes across the globe. 

“Together these acquisitions will enable THG to significantly accelerate the launch of further product innovation to global markets while increasing the proportion of THG Nutrition products wholly manufactured in-house.”