{"id":909,"date":"2020-09-30T14:12:00","date_gmt":"2020-09-30T13:12:00","guid":{"rendered":"https:\/\/www.westcoastcapital.co.uk\/thg-acquires-luxury-skincare-brand-perricone-md\/"},"modified":"2020-12-01T14:14:26","modified_gmt":"2020-12-01T14:14:26","slug":"thg-acquires-luxury-skincare-brand-perricone-md","status":"publish","type":"post","link":"https:\/\/www.westcoastcapital.co.uk\/thg-acquires-luxury-skincare-brand-perricone-md\/","title":{"rendered":"THG ACQUIRES LUXURY SKINCARE BRAND PERRICONE MD"},"content":{"rendered":"

THG Holdings plc (\u201cTHG\u201d or the \u201cGroup\u201d), the global technology platform company, specialising in taking brands direct to consumers, today announces the acquisition of Perricone MD, a pre-eminent US prestige skincare brand, for $60 million in cash. <\/p>\n

Founded in 1997, Perricone MD is a science-led topical skincare brand.  Its skincare formulations and supplements address a broad range of dermatological needs, supported by extensive clinical and consumer studies.  The brand has approximately 100 product patents and is committed to no-animal testing, clean ingredients and gluten free formulations. <\/p>\n

As the digital-strategic leader in the beauty market, the Group is able to be extremely selective with acquisitions and it has acquired 100% of Perricone MD for a 1x continuing sales multiple. Perricone MD is profitable at the EBITDA level although THG anticipates minimal impact in the current financial year. As Perricone MD is transitioned by THG Ingenuity into a digital-first and global brand it is expected to be earnings accretive by the end of the financial year 2021, achieving double digit EBITDA margins consistent with previous THG Beauty brand acquisitions. <\/p>\n

Perricone MD will join the Group\u2019s Beauty portfolio of own brands, which includes ESPA, Christophe Robin, Grow Gorgeous, Illamasqua, Mio Skincare, Mama Mio, Eyeko and Ameliorate. <\/p>\n

\u201cPerricone MD has a strong heritage, a loyal customer base and is a truly exciting addition to THG\u2019s beauty portfolio,\u201d said Matthew Moulding, Founder, Chairman and CEO of\u202fTHG. \u201cThe online beauty and skincare sector is growing rapidly, and this acquisition enables us to further strengthen our position as the world\u2019s leading pure-play speciality beauty brand owner and retailer.\u201d  <\/p>\n

THG\u2019s stated Beauty M&A strategy is to acquire industry-leading brands and intellectual property, typically constrained by store-based retail channels and limited geographic reach. Through immediate implementation of THG\u2019s Ingenuity Platform, Brands gain direct access to consumers across the globe. This enables THG\u2019s Brands to reach a truly global audience, whilst directly controlling every element of the consumer experience and delivering materially accretive margins.   <\/p>\n

Mr. Moulding added: <\/em>\u201cPerricone MD will now benefit from the powerful<\/em> and<\/em> <\/em>sustainable infrastructure of <\/em>THG Ingenuity,<\/em> which has a proven track record of scaling revenues and enhancing the margins of acquired brands<\/em>.\u201d<\/em> <\/p>\n

THG has been executing this own brand beauty acquisition strategy for the last four years, with over 50% of revenues across its existing portfolio of seven existing beauty brands now generated from direct-to-consumer sales globally online. <\/p>\n

Lookfantastic has been an important long-term partner for Perricone MD, enabling THG to build a significant understanding of the brand over many years. In the last 12 months, Perricone MD has seen very significant sales growth on Lookfantastic, which has given further confidence in the acquisition rationale of the brand. <\/p>\n

Immediately post acquisition, THG will launch Perricone MD on its THG Ingenuity technology platform, delivering the following benefits: <\/p>\n