Target Corp. is selling its online beauty and skin care company Dermstore to UK e-commerce company THG Holdings for $ 350 million.
THG, also known as the Hut Group, said on Tuesday that the acquisition will help the company pursue its goal of being a global leader in online beauty distribution. The company said in a press release that Dermstore will help it strengthen its relationships with major beauty brands, increase the scale of its beauty box business, and accelerate the growth of its own brands through a broad base. of American customers.
“One of the main drivers behind the decision to list THG on the London Stock Exchange just over three months ago was to enable the group to make major global investments, such as Dermstore.com,” Matthew said. Molding, general manager of THG, in a statement. . “Access to capital via a London listing has enabled us to accelerate our growth plans and build a global leadership position within the exciting beauty industry. “
THG also announced that it has purchased UK-based nutritional product suppliers, Claremont Ingredients Ltd. and David Berryman Ltd.
Target owns Dermstore since 2013, when the Minneapolis-based retailer was looking to expand its presence in the high-end beauty industry. Dermstore.com offers hundreds of professional grade skin care, hair styling and makeup products.
“For seven years, Dermstore has achieved growth milestones as a premium e-commerce beauty retailer operating as a wholly owned subsidiary of Target,” Target said in a statement Tuesday. “The pending sale of Dermstore to THG Holdings aligns it with an organization that shares long-term strategic goals and growth priorities. Target is focused on continued growth and winning market share through its assortment of beauty products to meet the needs of our customers.
Over the past few years, Target has continued to develop its beauty business. Last month he announced its partnership with Ulta Beauty will open Ulta boutiques in the beauty sections of more than 100 Target stores in the second half of next year before expanding to hundreds more.