The Hut Group reportedly being circled by private equity firms
The Hut Group (THG) is reportedly being circled by private equity firms considering a buyout of the online retail group, which operates DTC brands including Coggles, AllSole and Lookfantastic.
According to The Daily Mail, Advent International, Apollo and Leonard Green are all eyeing up an acquisition of the company. Insiders said executives from Advent recently visited THG's offices in Manchester.
The reports come only six months after US investment bank and financial services giant Goldman Sachs took a 4.8% holding in the group. In 2020, Goldman Sachs was one of the seven banks hired to steer a £4.5 billion float on The London Stock Exchange, which also included Citi, JP Morgan, Barclays, HSBC, Jefferies and Numis.
Advisers at Jefferies are said to be working for THG on a deal with the private equity firms, who may be working as a consortium.
The Hut Group recently confirmed it expects sales growth to slow to between 22% and 25% over 2022, causing its shares to slide. Its also warned over lower-than-expected profit margins for 2021 due to currency movements and rising costs.
