THG Holdings also known as The Hut Group, has acquired Perricone MD for $60 million in cash.
 
Founded in 1997, Perricone MD, founded in 1997, has approximately 100 product patents. It is  committed to no-animal testing, clean ingredients and gluten-free formulations.
 
Perricone MD will join THG's beauty portfolio of own brands, which includes ESPA, Christophe Robin, Grow Gorgeous, Illamasqua, Mio Skincare, Mama Mio, Eyeko and Ameliorate.
 
“Perricone MD has a strong heritage, a loyal customer base and is a truly exciting addition to THG’s beauty portfolio,” said Matthew Moulding, founder, chairman and CEO of THG. “The online beauty and skincare sector is growing rapidly, and this acquisition enables us to further strengthen our position as the world’s leading pure-play specialty beauty brand owner and retailer.”
 
THG’s stated Beauty M&A strategy is to acquire industry-leading brands and intellectual property, typically constrained by store-based retail channels and limited geographic reach. Through immediate implementation of THG’s Ingenuity Platform, Brands gain direct access to consumers across the globe. This enables THG’s Brands to reach a global audience, whilst directly controlling every element of the consumer experience and delivering materially accretive margins.
 
“Perricone MD will now benefit from the powerful and sustainable infrastructure of THG Ingenuity, which has a proven track record of scaling revenues and enhancing the margins of acquired brands,” Moulding added.
 
In line with THG’s broader strategy, the group also remains focused on making investments across technology, sustainability and infrastructure. The purpose of these investments will be to further enhance its end-to-end ecommerce platform, delivering digital and sustainability transformation programs for 3rd party brands, in addition to powering THG’s own brands.
 
THG intends to report its first trading update (covering Q3 2020) to the market on October 26, 2020.