eCommerce giant THG has successfully acquired US skincare brand Biossance for $20m (£16m) following a quick five-hour bidding process. Biossance, founded in 2015, has garnered global revenues of $300m and is currently available in over 1,600 stores worldwide, including Sephora, Harrods, and Douglas and Selfridges, in addition to online marketplaces Lookfantastic and Cult Beauty. The acquisition of Biossance by THG from US biotechnology group Amyris Inc includes IP, inventory, and debtors with a book value of $29m.
THG CEO Matthew Moulding noted, “We are pleased to have acquired the leading skincare brand Biossance,” adding that the technology-led, clean chemistry formulations have resonated with consumers globally exemplified by the brand’s strong performance on THG’s retail sites. THG’s acquisition of Biossance allows for further growth in the US market and integration with the Ingenuity platform that will commence after finalisation of the deal.
In his LinkedIn post, Moulding praised the acquisition as a welcome change from foreign buyers gobbling up UK companies like “Pac-Man” and highlighted Biossance’s prior success under Amyris Inc. Despite the brand’s success, buyer interest was minimal, with THG declared as the successful bidder after only a few hours of bidding.
The new acquisition will bring cheaper routes to market and provide an immediate breakeven opportunity for Biossance within THG. THG won the bidding process by agreeing to pay $20m for Biossance, which includes c$23m of stock and $6m of receivables. THG’s previous experience in prestige skincare, such as the Perricone MD and ESPA brands, provides the management team led by Catherine Gore with a dedicated supply chain and tech platform.
