The Hut Group has bought Berlin-based subscription beauty box business Glossybox as it extends its international reach to Europe.
Customers of Glossybox subscribe to a regularly-delivered box of beauty products. The company was founded in Berlin in 2011 and now operates in 10 markets. It has offices in the UK as well as Germany, France, Sweden and the US. That will add to a The Hut Group footprint that includes four sites, including a head office, in Cheshire in the UK, alongside social media and production sites in the US.
The Hut Group has in recent years focused on moving its business strategy away from low margin entertainment and towards high-margin areas such as health and beauty products. It says Glossybox is a good fit because it will both sit alongside existing subscription models offered by its lookfantastic, Beauty Box, MyGeekBox and PopInABox brands, and also fits with a strategy of extending its international reach.
The Hut Group founder and chief executive Matthew Moulding said: “This is another significant investment for The Hut Group (THG). In Glossybox we have acquired a great brand with a solid and engaged customer base that, once powered through our platform and marketing infrastructure, should be capable of further growth.
“At THG we have a relentless focus on both technology and beauty. With our world-class proprietary commerce platform we are confident we will continue to deliver strong growth and extend our global reach.”
Glossybox chief executive Caren Genthner-Kappesz said: “I am very excited about this acquisition. It was extremely important to us to find the right buyer for our brand, one that complements us and can use its retail know-how and technological capabilities to accelerate and strengthen Glossybox further in its journey of being a global industry-leading brand and a well-trusted beauty advisor for our engaged subscribers.”
The acquisition comes soon after The Hut Group reported sales of £501m in 2016, 50% up on the same time last year. Earnings before interest, tax and asset write downs came in at £50m, 67% up on last time.
