Sign in
- You are currently accessing unquote.com via your Enterprise account.
  
  If you already have an account please use the link below to sign in.
  
  If you have any problems with your access or would like to request an individual access account please contact our customer service team.
  
  Phone: +44 (0)203 741 1137
  
  Email: Georgina.Lawson@acuris.com
  - Sign in
Follow us
- Twitter
- LinkedIn
Free Trial
Subscribe

KKR to invest £100m in The Hut Group

Kenny Wastell
22 July 2014

Tweet
Facebook
LinkedIn
Google plus
Send to

KKR is understood to be poised to buy a 20% stake in UK-based online retailer The Hut Group for £100m.

The Hut Group will continue with its existing growth strategy, which targets international expansion and acquisitions.

The investment is understood to be financed through KKR's existing balance sheet, as was the case when the firm recently acquired a majority stake in Aberdeen-based OEG Offshore Group.

In 2014, 50% of The Hut Group's revenues were generated from non-UK sales. In April this year it acquired Moo, the owner of online classified advertising brand Preloved.co.uk.

KKR is believed to have been attracted by the company's strong cashflow generation, earnings growth and its technology platforms, which have managed 300 million users in 2014.

Last month The Hut Group reported a 34% increase in year-on-year revenue, up from £132m to £176.4m. It also reported adjusted EBITDA of £15m, an increase of 48% on the same period last year.

It is understood the company's management will retain their stake in the company with a KKR representative taking a seat on the board.

The Hut Group has been repeatedly linked with an IPO since receiving backing from Balderton Capital, initially in April 2010 with further reports the following year. The company was expected to raise £100m through a flotation on the London Stock Exchange.

In April 2010, Balderton, Artemis, William Currie Group and ex-Matalan CEO Angus Monro provided the group with £14m. The consortium then injected a further £18.5m in November 2010 to finance the £19.4m acquisition of Lookfantastic Group.

Founded in 2004, The Hut Group is an e-commerce company based in Northwich that sells a wide range of products including sports nutrition, health and beauty items, entertainment, clothing, accessories and technology services. The company operates 15 websites including MyProtein, The Hut, ProBikeKit.com and AllSole.com.

Oakley Capital Corporate Finance is understood to be acting as advisers to KKR.