Private equities close in on Matthew Moulding’s THG for buyout

By Becky Bargh 8-Feb-2022

Online retailer and beauty owner has seen its share price fall more than 80% in the last year

The Hut Group acquired pure play beauty retailer Cult Beauty last year

Private equity firms Advent International and Leonard Green are reported to be exploring a buyout deal for Matthew Moulding’s online retailer THG.

The beleaguered e-commerce platform and owner of beauty brands ESPA and Dr Perricone, is said to have recently welcomed executives from Advent at THG’s headquarters in Manchester, UK.

Shares for Moulding’s business have slumped more than 80% over the last year, according to The Times, after concerns were raised over its corporate governance and cash flows.

However, shares in the business jumped 16% when the initial announcement of private equity interest was made via Betaville, an online blog.

Back in October, THG reported a disastrous capital market day, in which the business shaved £1.85bn (almost 35%) off its market value.

Investors were said to be disappointed with Moulding’s outlook for 2030.

Recent years have shown that THG’s success has moved in peaks and troughs.

In 2020, the business set a new record when it registered on the London stock exchange with a listing worth £1.9bn.

Another major trigger for investors to pull out of the company came when it announced that it would separate its beauty business, publicly listing THG Beauty – it’s biggest sales-driver – in 2022.

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THG declined to comment on the potential buyout deal.

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