THG fundraises £95.4 million to spin-off technology arm Ingenuity
Yesterday, Cult Beauty and Myprotein owner THG revealed it was going ahead with demerging its e-commerce platform Ingenuity. Today, it has reported an oversubscribed fundraising of £95.4 million, succeeding its £75 million target.
The cash will be used to take loss-making technology arm Ingenuity private. Existing shareholders contributed approximately £50 million to the fundraiser, led by Matthew Moulding, CEO of THG, who invested £10 million.
Frasers Group has also become an investor in online retailer THG, underscoring its commitment to its multi-year strategic partnership with the beauty conglomerate. Earlier this year, THG announced a strategic partnership with Frasers Group, including a multiyear Ingenuity agreement, and the deployment of the group’s credit and loyalty platform Frasers Plus.
Once the demerger of THG is complete, the business will consist of the beauty and nutrition business that is behind the brands Myprotein and Cult Beauty. It also owns businesses including the brand Lookfantastic and the City AM newspaper.
Publicly listed THG said this move will allow it to become a “simpler, cash-generative business capable of paying future dividends”.
Yesterday, the business also announced its third quarter trading for the period ending 30 September 2024. THG Beauty's revenue was up by 2.8% to £254.7 million and THG Ingenuity's revenue was up 16% to £44 million. Full-year performance is expected to be within the company consensus range.
