The Hut Group to buy skincare manufacturer for $255m

The Hut Group (THG) has announced plans to take over US-based skincare and haircare manufacturer Bentley Laboratories for $255 million.

The British e-commerce company said that the United States is an important growth market for the business.

Bentley Labs already develops and manufactures some of THG’s existing ‘Perricone’ products.

The online retailer, which reported revenue growth of 42 per cent last year, said that the buyout will allow it to internalise the production of these items and accelerate its programme of new product development.

The move comes days after Japanese conglomerate SoftBank agreed to invest £1.6 billion in the UK company.

“This investment within our THG Labs division supports the Group's vertical integration strategy, while further deepening our close and important relationships with brand owners across the global beauty industry,” said Matthew Moulding, executive chairman and chief executive, THG. "Bentley provides THG with US-based, pre-eminent in-house skincare and haircare new product development capabilities and manufacturing, which will be leveraged across THG's expanding own beauty brand portfolio, as well as THG's partner brands across Ingenuity and Beauty to embed THG even more deeply as a strategic partner to clients."

The company said that the manufacturer is expected to contribute sales of $77 million (£55 million) and an adjusted EBITDA of $15 million (£11 million) in 2022.

For the remainder of 2021, THG predicts that Bentley will contribute $35 million (£25 million) in sales and an adjusted EBITDA of $7 million (£5 million.)

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