Hut Group raises £1bn to fund expansion drive
ONLINE health and beauty retailer The Hut Group has transformed its balance sheet after raising £1bn to help fund its ongoing expansion.
The oversubscribed capital raising will see its largest investor, BlackRock, and Belgium-based investment company, Sofina, increase its stake following a £66m equity financing deal.
This is an addition to a £501m term-loan, a five year £150m credit facility with lenders Barclays and HSBC, and a £200m package for its property assets.
The investment will be used to drive greater investment in its leading beauty and wellness brands and its online platform, Ingenuity.
The capital will also be used to invest in, and enhance its freehold properties within its THG Events division, as well as ICON & THQ, the
Group’s two landmark developments at Manchester Airport.
Matthew Moulding, founder and CEO of THG, said: “The expanded capital raising is a landmark achievement and provides an exceptional growth and investment platform for the business.
“The significant excess demand and new debt rating, and during the time of the general election, demonstrate the strength of THG’s business model and proposition and is further testament to the global model we’ve built. Our business continues to evolve with the demands of consumers, as we continue to invest across the Group to develop our people, infrastructure and particularly our proprietary ecommerce solution, Ingenuity.”
THG has grown sales from £80m (2010) to well in excess of £1bn this year with two-thirds of revenues generated internationally across
Europe, Asia and the US. Citi, Barclays and HSBC acted as mandated lead arrangers and joint global coordinators with Santander, JP Morgan and National Westminster Bank as mandated lead arrangers and bookrunners on the financing.
THG was advised by Clifford Chance, Gibson Dunn, Gowling, EY Parthenon, Deloitte and Eastdil Secured.