THG acquires cosmetics contract manufacturer Acheson & Acheson

UK-based online health and beauty retailer The Hut Group (THG) has acquired British cosmetics contract manufacturer and developer Acheson & Acheson.

Reported by The Financial Times to be valued at around £60m, THG is looking to use the deal to increase its in-house production of makeup products.

Established in 1992, Acheson & Acheson manufactures a wide range of skincare and haircare products, including its own skincare brand Ameliorate, which is targeted at Keratosis Pilaris patients.

Ameliorate is marketed worldwide through speciality retailers such as Space NK Apothecary, Selfridges, Boots, Harvey Nichols, Liberty’s and Marks & Spencer.

Commenting on the deal, THG CEO Matthew Moulding said: “In Acheson & Acheson, we have made a significant investment and one that uniquely positions THG to make a step-change in its innovation, operational excellence and manufacturing capacity.”

The proposed acquisition is expected to strengthen THG’s infrastructure, adding a 78,000ft² production facility in Somerset and a packaging, storage and distribution facility in Wiltshire to its portfolio, which currently includes a one million square foot Cheshire-based facility and Kentucky-based facility in the US, as well as a production and logistics centre in Poland.

This extension to THG’s facilities will allow the company to offer next-day delivery to Europe.

THG is also planning to invest approximately £50m in its European and US infrastructure as part of future expansion plans.

Investment banking firm Baylor Klein advised Acheson & Acheson on the deal, while THG was advised by Travers Smith.

In May this year, THG announced the acquisition of specialist eye cosmetics brand Eyeko.