The Hut Group Announces Improved & Extended $1 Billion (USD) Banking Facility

The Hut Group Limited (“THG” or the “Group”), one of the world’s largest online Beauty & Wellbeing businesses, today announces newly improved Group banking facilities, in excess of $1 billion (USD). The enhanced facility will support upcoming major investments in Beauty, Technology and Infrastructure, enabling the Group to continue to deliver on its growth plans.

The enhanced facility increases and extends the revolving credit facility to a 4-year deal while the M&A facility has also been extended to become a 3-year deal. As part of this refinancing, the Group welcomes Shanghai Pudong Development Bank into the revolving credit facility, reflecting the significance of Asian markets which now accounts for over 20% of Group Sales.

Andrew Woods, Shanghai Pudong Development Bank, Relationship Manager commented: “We are delighted to join The Hut Group’s core banking facility at this exciting time in the company’s development. This transaction is in line with the banks strategy of facilitating UK corporates with their trade flows to China and underlines our confidence in the THG management team.”

In addition to the expanded facilities above, the Group has also agreed new property funding up to €40m with Intesa Sanpaolo to finance the freehold acquisition and fit out of the recently commissioned Distribution Warehouse in Wroclaw, Poland. The new 800,000 sq. ft. fulfilment and manufacturing facility will provide the Group with faster and more efficient access to almost 300 million online shoppers, helping keep pace with the continued global growth.

THG continues to grow rapidly, with 2018 sales in excess of $1.2bn. The Group continues to invest in its own brand proposition, particularly its ever-growing Beauty portfolio, which is powered by THG Ingenuity, its proprietary e-commerce technology platform. The platform, which generates global consumer demand insights, continues to grow and now trades on over 166 localised websites across 46 languages and 42 currencies.

Matthew Moulding, Founder and Chief Executive Officer of THG, said: “We are thrilled to build on the continued support shown by our banking syndicate and also very much look forward to working with our new partners. We value their support and the partnership we have developed with each of them.

“Our new property funding for our distribution warehouse in Poland, alongside this extension of our credit facilities are further powerful additions, for the Group and its business model, as we continue to deliver on our ambitions of becoming the global digital leader across the Beauty and Wellbeing sector and drive forward our expansion plans.”

Steven Estill, HSBC UK’s Relationship Director for Large Corporate, said: “We have been working with THG since 2014 and over that time we’ve seen the business grow rapidly in global online beauty and wellbeing markets. This recent refinancing will position the business perfectly to continue its search for acquisitions over the coming years. We look forward to working alongside the Group as they continue to deliver on their latest ambitions.”

Graham Holland, Barclays Relationship Director, said, “Barclays is once again delighted to support the ambitions of The Hut Group by taking a leading role in the refinancing of their capital structure. This provides financial strength and enables them to continue to pursue their growth agenda with confidence and capitalise on market opportunities arising from the current economic climate.”

The following banking teams executed the transaction: HSBC (Steve Estill, Will Rix & Jake Taylor); Barclays (Tom Johnson, Na Wei, Graham Holland & Atif Malik); Santander (Andrew Mulliner, Matthew Thomas, Charlotte Lees & Tom Bamber); Citibank (Sam Norton, Ula Malczewska & Ryan Ladwa); JP Morgan (Christos Kolimenakis, Zev Garell, Chris Wood & Richard Johansson); NatWest (Richard Smart, Howard Gillibrand, David Caunce & Kieran O’Malley); Bank of Ireland (Alastair Kenny, Harriet Castle and David Willis); Shanghai Pudong Development Bank (Tad Becchetti & Andrew Woods); Lloyds (Kate Grimoldby, Karen Mann, Andy DeVaux & Chris Lawrie); AIMCO (Peter Hutton & Peter Shen) and SVB (Rosh Wijayarathna, Van Tran, Jash Miller & Ryan Barnett)

The Hut Group was advised by Martin O’Shea, Jessica Burgess and Emma Parker from Addleshaw Goddard. Matt Morgan of Pinsent Masons advised the syndicate, assisted by Becca Labib and Sarah Greenwood.

For more information, please contact:
Viki Tahmasebi – viki.tahmasebi@thehutgroup.com
Group Communications Director – 07966 028340

Notes to Editors

About THG

The Hut Group (THG) is an international technology company, focused on beauty and wellbeing retail. Founded in 2004 by CEO Matthew Moulding, Manchester-based THG now operates 166 localised websites, retailing goods in 164 countries. In the year to 31 December 2017, the Group grew sales by 47% to £736m, with international sales growing 62% to £512m (latest available figures). Over half of THG’s sales now come from own brand products.

 Pioneering Technology Platform
THG is a British technology success story. Its in-house team design, develop and build bespoke proprietary technology that is used by hundreds of millions of people worldwide.
Its unique platform, THG Ingenuity, helps the Group dispatch 37 million items to customers across the world, and saw THG reach the top of the Sunday Times profit track for two consecutive years. The platform was recognised as E-tailer of the Year in 2016 by Retail Week.

Talent
The Hut Group is the #1 place for ambitious young talent, with over 1,800 jobs created in 2017 and the THG Academy working to build the next generation of business leaders.

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