The Hut Group primed for growth after £1bn funding round

The CEO of fast-growing eCommerce business The Hut Group (THG), Matt Moulding, is eyeing further expansion following a successful £1 billion funding round.

Moulding, who founded the Manchester-based THG in 2004, described the expanded capital raising as “a landmark achievement” that will provide “an exceptional growth and investment platform for the business”.

New capital primarily comes from a significantly oversubscribed €600 million Term Loan B debt issuance which received €150 million of excess demand in only three weeks of marketing. THG also secured a new five-year £150 million revolving credit facility provided by Barclays, HSBC, Santander, Citi, NatWest and JP Morgan.

In addition, £200 million secured debt and development facilities were provided by Citi and CBRE Investment Advisory to THG’s newly created, wholly-owned subsidiary Propco holding company, while £66 million of primary equity was raised from global investment manager, BlackRock, and Belgium-based investment company, Sofina.

“The significant excess demand and new debt rating, and during the time of the general election, demonstrate the strength of THG’s business model and proposition and is further testament to the global model we’ve built,” explained Moulding.

“Our business continues to evolve with the demands of consumers, as we continue to invest across the group to develop our people, infrastructure and particularly our proprietary ecommerce solution, Ingenuity.”

Ingenuity powers THG’s brands, including My Protein and Lookfantastic, as well as supporting third-party global consumer good companies’ online operations, through hosting, content creation, translation services, payment options, couriers, affiliate marketing, and distribution. 

The capital will also be used to invest in THG’s properties, including the development of its new one million sq ft HQ office campus near Manchester Airport.

THG has grown annual sales from £80 million in 2010 to over £1 billion today.