Manchester’s Hut Group in £660m debt finance move

Matthew Moulding

Manchester-based online beauty and wellness firm The Hut Group (THG) on Thursday announced the launch of its inaugural Term Loan B (TLB) debt issuance. 

THG said it is raising £510 million of TLB debt, with a 7-year maturity plus a 5-year £150 million revolving credit facility, which is fully underwritten by Barclays, HSBC, Citi and Santander.

THG’s institutional shareholders include BlackRock, Old Mutual, Sofina, KKR and Balderton Capital.

“The transaction represents another step change in THG’s capital structure, enabling it to continue to build out its position as the digital strategic within Beauty & Wellness, with investments across the Ingenuity ecosystem plus prestige brands and world-class talent,” said THG.

THG said it has grown sales from £80 million in 2010 to more than £1 billion in 2019, with two-thirds of its revenues generated internationally across Europe, Asia and the US. 

“THG has rapidly grown profitability to industry leading levels through its vertically integrated, technology-first consumer brand portfolio and technology services model,” said THG.

“In excess of 50% of sales are generated through its own brands including Myprotein (#1 online global sports nutrition brand) and a portfolio of seven prestige beauty brands across Skincare, Haircare & Cosmetics (ESPA, Christophe Robin, Ameliorate, Grow Gorgeous, Mio Skincare, Illamasqua and Eyeko). 

“Through its lookfantastic brand, the largest online-only specialist beauty retailer globally, THG sells over 850 prestige Beauty brands such as Estee Lauder, MAC, Tom Ford, Bobbi Brown, Jo Malone and L’Oreal.

“THG’s Wellness and Beauty brands are powered by the group’s proprietary ecommerce and operating platform, Ingenuity – a unique ecosystem powering both THG’s sites and those for select consumer groups such as Nestle, P&G and J&J.”

Matthew Moulding, THG founder and CEO, said: “This is another major step forward for THG and a testament to the strength of the business we have built.

“These new debt facilities provide the company with significant investment capability enabling us to further drive our proposition across global markets, build brands of scale and continue to develop our leading technology, infrastructure and people.”

Citi, Barclays and HSBC are acting as mandated lead arrangers and joint global coordinators with Santander, JP Morgan and National Westminster Bank as mandated lead arrangers and bookrunners on the financing.