Billionaire entrepreneur Matthew Moulding's Hut Group has acquired online skincare retailer Dermstore from US retail giant Target for £259 million. The deal marks a significant step in the company's international expansion strategy.
Shares in the Manchester-based group, which operates websites including Lookfantastic, rose more than 9% following the announcement. Since its flotation in September at 500p, shares have increased over 50%, triggering a £1 billion payout for Moulding—one of the largest in UK corporate history.
The Hut Group, founded by Moulding in 2004 selling CDs, now runs over 100 websites and sells a range of consumer goods from cosmetics to protein supplements. It owns brands such as Glossybox and MyProtein and powers websites for major businesses including Honda and Nestle.
Moulding said the Dermstore acquisition would 'enhance its beauty strategy by substantially enhancing its relationships with key global beauty brands'. He added that a key reason for listing on the London Stock Exchange was to enable major global investments.
In a separate deal, the Hut Group also acquired UK nutrition suppliers Claremont Ingredients and David Berryman for £59.5 million. Both companies had been suppliers to the group and will support its investment in product innovation and manufacturing facilities.
