THG (The Hut Group), which had received a preliminary and non-binding indicative takeover proposal from US private equity investor Apollo Global Management last month, has brought an end to its discussions with the investment firm. Apollo has since announced that it does not intend to make an offer to acquire THG.
In preparation for the takeover, Apollo had engaged Camillo Pane and Tony Buffin to work with it to finalise its offer. Pane was formerly CEO of Coty and Buffin a former CEO of Holland & Barrett. A formal offer would have needed to be made by Apollo by the deadline date of 15th May, 2023. It is not known whether Apollo had plans to further involve Pane and Buffin had its bid been successful.
THG has been working hard to improve profitability and cash flow with good progress made during Q1 2023 which is continuing, it says, into the second quarter and that its online sales support its full-year guidance.
Lord Charles Allen, independent THG chair said: “THG’s board, in accordance with its fiduciary obligations and as demonstrated with its recent engagement with Apollo, will always give due consideration to all potential options which provide the opportunity to maximise value to THG’s shareholders.
“The board remains fully confident in THG’s strategic direction and long-term prospects as an independent company. As stated in our recent results, with a strong balance sheet and category leading positions within substantial global end markets that continue to benefit from long-term structural growth, we have confidence in our ability to deliver long-term value for shareholders and remain on track to be cashflow positive in 2024.”