MADE-UP FORTUNE
COASTERS SELL ONLINE COSMETICS COMPANY TO INTERNATIONAL JUGGERNAUT
TWO Gold Coast entrepreneurs are in line for a massive payday after selling health and beauty products e-tailer RY.com.au to British technology giant The Hut Group.
James Patten and Brad Carr have developed RY, which means “recreate yourself”, over the past 12 years into a leading online operator with a turnover approaching $20 million in FY17.
The retailer stocks more than 250 skincare, haircare and cosmetics brands includ- ing Becca, Miranda Kerr’s Kora Organics, Maybelline, Lime Crime and Ardell Lashes which has been endorsed by Kylie Jenner.
It markets 14,000 health and beauty products, exporting worldwide, with an Instagram following of more than 15,000 and has grown quickly to become the dominant player in the multi-billion dollar industry.
THG operates more than 140 websites and last year grossed revenue of £500 million ($810.5 million).
Its purchase of RY makes it the No.1 health and beauty product e-tailer in Australia.
Mr Patten, who was a child actor in the UK and Mr Carr, a Griffith University dropout, said it was always their intention to sell the company.
“We always knew there would be a time when we would exit the business (however) it was a few years before we expected,” he said.
“We were the natural choice being a well-run profitable company. It means they (THG) are No.1 instantly. One of the really exciting things for us is we feel THG is capable of taking the company to the next level.”
Mr Patten said THG, which operates Skincarestore.com.au, will keep the business on the Gold Coast.
He said he will stay on the Coast and plans to embark on another e-commerce venture with Mr Carr in the near future after taking a few weeks off.
“We feel we have done a good job building the business. We like the online space and that is where we want to stay,” he said.
Last year RY opened its second bricks-and-mortar store in Southport and earlier this year doubled its premises when it expanded from Burleigh Heads to Currumbin Waters.
THG chief executive Matthew Moulding said RY complemented its range of businesses.
“At THG, we have a clear focus on health, beauty and technology, and we are proud this investment sees us become the No.1 health and beauty e-tailer in Australia.”
In recent years THG has been on an aggressive expansion drive, snapping up USbased IdealShape last year and UK-based Myprotein for a reported £60 million in 2011.