Britain based online retailer The Hut Group (LON: THG) has announced its upcoming plan to acquire fellow online retailer Dermstore from its current owner Target Corp. (TGT) in a deal worth $350 million.
Hut will be using this acquisition to increase the influence of its beauty products across United States. The company owns several retail brands including Lookfantastic and skin care group ESPA.
The company expects Dermstore to add sales of about $180 million and adjusted core earnings of around $4 million in the 2021 financial year of Hut.
Hut is expecting an antitrust clearance for Dermstore acquisition from regulators by the end of January 2021.
Not long ago, Hut also acquired David Berryman and Claremont Ingredients for 59.5 million pounds ($80.29 million). The main reason behind the purchase was to expand its drinks business and introduce its tailor made flavors across the world.
Hut expects these two companies to add sales of about 15 million pounds and adjusted core earnings of about 4 million pounds in its 2021 fiscal year.