Advent International and Leonard Green explore potential acquisition of THG amidst share price surge

  • Private equity firms Advent International and Leonard Green are exploring a buyout of The Hut Group
  • THG’s shares have plummeted over the past year, losing £3.8bn in market capitalization
  • Apollo is also linked with the deal but considered less likely to be a buyer
  • The company may be re-listed in the US if a deal goes through
  • THG’s full-year revenues soared 91% in 2021, reaching £2.2bn due to investments in infrastructure and M&A

Private equity firms Advent International and Leonard Green are reportedly exploring a buyout of the struggling online retailer, The Hut Group (THG), following a 16% increase in shares. Apollo is also linked to the deal but considered less likely as it is already a debtholder. THG’s market capitalization has dropped from £5.4bn to £1.62bn since its 2020 IPO, and owner Matt Moulding relinquished his ‘golden share’. Despite a 91% revenue increase in 2021, concerns over cash flow and corporate governance persist.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the potential buyout of The Hut Group by private equity firms Advent International and Leonard Green, shares’ performance, and the company’s financial situation. It also includes relevant details about the companies involved and their possible actions, such as re-listing in the US. However, it lacks some context on the reasons behind the decline in share value and could provide more information on the factors affecting THG’s cash flows.
Noise Level: 3
Noise Justification: The article provides relevant information about a potential buyout of The Hut Group by private equity firms and includes details on the companies involved, recent share price movements, and financial performance. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: The Hut Group’s shares and potential private equity buyers (Advent International, Leonard Green, Apollo)
Financial Rating Justification: This article discusses the exploration of a buyout of The Hut Group by private equity firms, which impacts the company’s stock price and its future listing. It also mentions the decline in the company’s market capitalization and financial performance, making it financially relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk