THG acquires Cult Beauty in £275m deal

THG, the online beauty and wellness group, has acquired trailblazing prestige beauty etailer Cult Beauty in a £275m deal.

Manchester-based THG, which owns Lookfantastic, Dermstore, Glossybox and a raft of other beauty and wellness brands, said Cult Beauty’s portfolio of emerging and independent third-party brands was “a compelling addition for THG Beauty”.

Founded by entrepreneur Jessica DeLuca in 2008, who was then joined in the business by co-founder and co-CEO Alexia Inge, Cult Beauty blazed a trail for selling beauty online and found a loyal following for its edit of independent, or cult, brands and its on-site story-telling.

Brands on the site include Charlotte Tilbury, Drunk Elephant and Huda Beauty, which are currently not available elsewhere in the THG portfolio. With less than 50% of its sales coming from international markets, THG sees a promising opportunity for global expansion for Cult Beauty, but it will focus on markets outside of the US, which it will continue to serve via Lookfantastic and Dermstore, a multi-brand online beauty retailer it acquired from US retail giant Target at the end of last year.

Click here to read the full article.