The Hut Group, a rapidly expanding British e-commerce company, has recently announced its plans to acquire Cult Beauty, a beauty e-tailer based in the UK, for £275 million ($382.91 million). This acquisition is seen as a significant addition to THG Beauty, the beauty division of The Hut Group. Cult Beauty is known for its collection of emerging and independent third-party beauty brands, making it a valuable asset for THG Beauty. It is estimated that Cult Beauty will generate approximately £60 million in sales this year and contribute £140 million in net sales to the overall business next year.

Cult Beauty offers a wide range of skincare, haircare, and cosmetics brands, including popular names like Charlotte Tilbury, Drunk Elephant, and Huda Beauty. This acquisition presents a unique opportunity for THG Beauty to expand its consumer offerings globally, as two-thirds of the brands sold by Cult Beauty are not currently available on existing THG Beauty sites. Despite the acquisition, Cult Beauty will maintain its distinct brand identity within THG Beauty, preserving its reputation and appeal to customers.

Alongside the Cult Beauty acquisition, The Hut Group has also revised its sales growth guidance for 2021. The company now anticipates a growth rate between 38% and 41% on a currency-adjusted basis, surpassing its previous guidance of 30% to 35%. This upward revision highlights the company’s confidence in its ability to drive sales and capture market share.

Furthermore, The Hut Group has provided an update on its collaboration with SB Management, a subsidiary of the Japanese venture capital giant SoftBank, for its tech arm THG Ingenuity. Progress on the collaboration has been described as “good,” and the company has announced plans to spin off THG Ingenuity into a separate entity within the next 15 months. This move not only presents SoftBank with the opportunity to invest $1.6 billion in the spun-off unit, acquiring a 19.9% stake, but it also demonstrates the success and growth potential of THG Ingenuity.

The separation of THG Ingenuity is progressing ahead of schedule, indicating the strength and agility of The Hut Group as a whole. This strategic move will allow THG Ingenuity to further expand and flourish as an independent entity, bolstered by SoftBank’s potential investment.

The acquisition of Cult Beauty and The Hut Group’s strong sales growth guidance underscore the company’s dedication to expanding its presence in the beauty industry. With its diverse brand portfolio and global consumer base, THG Beauty is well-positioned for further success in the ever-evolving e-commerce market.

Useful links:
– [The Hut Group – Official Website](https://www.thehutgroup.com/)
– [Cult Beauty – Official Website](https://www.cultbeauty.co.uk/)