THG announces integration of Biossance to its portfolio
THG Boss says Biossance's "fit within THG is perfect" after acquiring the prestige skincare brand from US biotechnology group Amyris Inc. for a maximum consideration of £15.8 million ($20 million).
Amyris Inc. recently commenced voluntary Chapter 11 proceedings and sold off four of its consumer brands at auction on 30 November 2023. THG was declared as the successful bidder for assets including IP, inventory and debtors with a book value of £22.9 million ($29 million).
Closing is expected to follow in mid-December, with integration completed in Q1 2024.
Since its inception in 2015, Biossance has generated global revenues of approximately £237 million ($300 million) and is currently stocked in over 1,600 stores globally including Sephora, Harrods, Space NK, Douglas and Selfridges plus online through its DTC channel, Lookfantastic and Cult Beauty.
The brand’s curated skincare range of cleansers, creams and serums is centred around its superstar ingredient - squalene - and its innovative ingredient technology and a commitment to sustainability.
Matthew Moulding, CEO of THG, commented: “We are delighted to acquire the pre-eminent skincare brand Biossance. The technology-led, clean chemistry formulations resonate with consumers globally, evidenced by a strong performance on our retail sites.
“We have significant experience in prestige skincare as an innovator and manufacturer, and through our brand portfolio including Perricone MD and ESPA. We’re incredibly fortunate and excited to secure this opportunity to work with the Biossance team and further build on the brand’s strong awareness across the US.
“The fit within THG is perfect, with Biossance already generating c. $2 million in revenue across our retail sites in the past 12 months. Integration onto the Ingenuity platform will commence as soon as the deal is finalised.”
In October, THG reported its best quarterly performance in the last year despite a drop in revenue. The group saw revenue decrease 4.4% to £466.5 million during the third quarter ending 30 September 2023.
