THG has raised £95.4 million from new investors and existing shareholders in its bid to fund the group’s break up, and secure a new listing for Ingenuity.
Existing long-term and institutional shareholders contributed c.£50 million, led by Moulding, CEO and founder of THG, who invested £10 million in the fundraising.
This now enables THG, which consists of the Beauty and Nutrition divisions, to become “a cash generative global consumer beauty and nutrition group, with an improved balance sheet, capex and cashflow profile” according to the group.
A £10m strategic investment from Frasers Group sees links between the two businesses strengthen, which THG says is “further underscoring their commitment to its multi-year strategic partnership with THG”. Frasers stocks a range of Myprotein products at Sports Direct.
It is expected that Ingenuity’s existing executive team, including its chairman Alistair Crane and CEO Richard Ward, will remain with IngenuityCo following the demerger.
Arms-length contracts between Ingenuity and each of Beauty and Nutrition, which have been in place since 2022, will be expected to continue operating as they currently do.
In a statement minutes after THG’s announcement at close of market yesterday activist investor Kelso said in a statement: “Kelso believes in Ingenuity’s model and its long-term future and that the demerger will be highly beneficial for Ingenuity, as well as for THG Beauty and MyProtein as the remaining parts of THG.
“Kelso believes that the value of the two remaining businesses are each worth more than the current market capitalisation of THG.
“Kelso is also supportive of the placing announced today and pleased with the board’s speed of execution and decisive action. Kelso intends to participate in the placing.”
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