Online retailer THG plans to split up and list its beauty business in 2022
(Reuters) -THG Plc will separate and list its online beauty business next year, the UK e-commerce company said Thursday, as the unit focuses on growing its cosmetics and skincare line. skin.
The company, which raised more than $ 1 billion from Japanese group SoftBank earlier this year, also said it was considering a separate listing of its nutrition business.
THG, which itself went public last year, said the listing would allow THG Beauty to grow its portfolio and strengthen its social media presence. The unit is home to brands such as Lookfantastic, Cult Beauty and Dermstore.
The move is part of the Manchester-based company’s restructuring plan and comes just one month after the purchase of online beauty retailer Cult Beauty to bolster its digital presence.
“Today, we are also announcing our commitment to enroll THG Beauty in 2022, which we believe will create more value for our shareholders,” Executive Chairman and CEO Matthew Molding said in a statement.
Jefferies analysts said THG may retain majority stake in the list, adding that they expect THG’s “ambitions on the valuation front to be certainly higher” than the house’s estimate. brokerage of 1.8 times the enterprise value of THG Beauty for forward sales.
THG Beauty’s sales jumped 55.9% to 460.8 million pounds ($ 636.60 million) in the first half, the U.K. company said in its interim results, while overall sales of the group grew by almost 42%.
($ 1 = 0.7239 pounds)
(Reporting by Aditi Sebastian and Pushkala Aripaka in Bengaluru; Editing by Shounak Dasgupta)