Online Beauty Retailer Expands into US Market with Dermstore Deal

  • The Hut Group acquires Dermstore for £251m
  • Expected to bring additional £135m in sales for FY 2021
  • Expands Lookfantastic.com brand and online marketing efforts
  • 20% of group’s sales now in the US, targeting further growth

The Hut Group (THG) has completed the acquisition of US-based skincare and beauty ecommerce company, Dermstore, for £251m. Established in 1999, Dermstore provides professional grade skincare throughout the US. The deal is expected to bring an additional £135m in sales to THG’s operations for the remainder of FY 2021 and add £3m to its adjusted EBITDA. This acquisition aims to expand Lookfantastic.com brand and support the group’s shift towards online marketing. With this move, over 20% of the group’s sales are now in the US, presenting an opportunity for further growth.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about the acquisition of Dermstore by The Hut Group, including details on the financial aspects, reasons behind the acquisition, and its impact on the company’s growth. It also includes a quote from Matthew Moulding, the CEO, which adds credibility to the report.
Noise Level: 3
Noise Justification: The article provides relevant information about the acquisition of Dermstore by The Hut Group and its expected impact on the company’s sales and operations. It also includes quotes from Matthew Moulding explaining the strategic importance of this move for the company. However, it lacks in-depth analysis or exploration of long-term trends or consequences of the decision.
Financial Relevance: Yes
Financial Markets Impacted: The acquisition of Dermstore by The Hut Group impacts the health and beauty industry’s e-commerce sector.
Financial Rating Justification: This article discusses a significant acquisition in the health and beauty industry, which has financial implications for both companies involved. It also mentions the expected impact on sales and adjusted EBITDA for the acquiring company.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article

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