Business
THG acquires luxury skincare brand Perricone MD
THG acquires luxury skincare brand Perricone MD.
About this update from Thg Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5100A\n THG Holdings PLC\n 30 September 2020\n \n \n \n \n 30th September 2020\n \n \n \n \n \n THG Holdings plc \n \n \n \n \n \n THG ACQUIRES LUXURY SKINCARE BRAND PERRICONE MD\n \n \n \n \n \n Acquisition further strengthens THG's leadership in specialty beauty retailing\n \n \n \n \n \n THG Holdings plc (\"THG\" or the \"Group\"), 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.\n \n \n \n \n \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.\n \n \n \n \n \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.\n \n \n \n \n \n Perricone MD will join the Group's B\n eauty portfolio of own brands, which includes ESPA, Christophe Robin, Grow Gorgeous, Illamasqua, Mio Skincare, Mama Mio, Eyeko and Ameliorate.\n \n \n \n \n \n \n \"Perricone MD has a strong heritage, a loyal customer base and is a truly exciting addition to THG's beauty portfolio,\"\n \n said Matthew Moulding, Founder, Chairman and CEO of THG. \"The online beauty and skincare sector is growing rapidly, and this acquisition enables us to further strengthen our position as the world's leading pure-play speciality beauty brand owner and retailer.\"\n \n \n \n \n \n THG's stated Beauty M&A strategy is to acquire industry-leading brands and intellectual property, typically constrained by store-based reta...