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THG Agrees To Acquire Cult Beauty For £275 Mln

THG Plc (THG.L), on Wednesday, said it agreed to acquire Cult Beauty Ltd., the UK based online beauty retailer of prestige and emerging independent brands, for £275 million on a cash and debt-free basis.

The company noted that the total consideration of £275 million represents about 2.0x FY 2022 sales multiple. Cult Beauty is expected to contribute sales of about £60 million and adjusted EBITDA of about £3 million for the remainder of FY 2021.

THG said it has continued to trade strongly and on a constant currency basis is ahead of prior management expectations, inclusive of the acquisitions of Bentley Laboratories LLC and Cult Beauty.

Further, THG announced both a tighter and increased range of 38% - 41% revenue growth for FY 2021 on a constant currency basis, upgraded from Q1 2021 guidance of 30% - 35%. Taking into account foreign exchange movements since prior guidance, the Group expects to deliver reported revenue growth of 35% - 38% for FY 2021.

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