Cult, which includes the Lookfantastic brand, was founded in 2007 and now sells around 300 brands like Charlotte Tilbury, Living Proof and Molton Brown. Cult Beauty is being acquired from private shareholders for £275m on a cash and debt-free basis and is expected to contribute sales in the region of £60m, a figure which THG believe will more than double over the next 24 months.
Some two thirds of Cult’s brands are not currently sold on THG’s other beauty products sites, providing an opportunity for it to extend consumer choice globally. In addition, under half of Cult Beauty’s sales are made to overseas customers which delivers an opportunity to further develop Cult’s reach.
Executive chairman and chief executive off THG, Matthew Moulding, said: “Cult Beauty is frequently the partner of choice for emerging indie brands due to its personalised, content-led approach and enthusiastic consumer base who are continually seeking new, innovative solutions to complement their beauty routines. Cult Beauty’s first-to-market reputation makes the brand an exciting fit for our THG Beauty division. When retailing brands to consumers THG Beauty will run with two unique fascias within our main continents: THG will principally service customers within North America via our Dermstore and Lookfantastic brands, while in the UK, Europe, Asia and the Rest of the World the key brands will be Lookfantastic and Cult Beauty.”
He added: “We anticipate fully migrating Cult Beauty onto the THG Ingenuity platform by the end of the year – within the first six months of acquisition – giving the brand access to the global digital features to underpin significant future growth.
“Further to the announcement made on 2nd February 2021, we are also pleased to confirm the Dermstore integration strategy remains on plan with the migration to Ingenuity already completed ahead of schedule.”
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