THG buys Biossance for $20 million

Online retail specialist THG announced on Tuesday that it’s agreed to acquire prestige skincare brand Biossance for a “maximum consideration” of $20 million.

The purchase comes after Biossance’s owner, US biotechnology group Amyris Inc, recently launched voluntary Chapter 11 bankruptcy proceedings.

THG won the auction for the brand last week, taking on its assets including IP, plus inventory and debtors with a book value of $29 million.

The deal should close in the middle of this month, with integration completing in Q1 2024.

THG said eight-year-old Biossance has generated global revenues of around $300 million since it was founded and is currently stocked in over 1,600 stores globally including Sephora, Harrods, Space NK, Douglas and Selfridges. It’s also available online through its own webstore, plus two of THG’s own online beauty stores, Lookfantastic and Cult Beauty, so THG is clearly well aware of the appeal and potential of the brand.

Biossance’s curated skincare range of cleansers, creams and serums is focused on its “innovative ingredient technology and a commitment to sustainability”, with price points ranging from $15 to $74.

Matthew Moulding, CEO of THG, described it as a “pre-eminent skincare brand” with “technology-led, clean chemistry formulations [that] resonate with consumers globally, evidenced by a strong performance on our own retail sites”.

He added that “we have significant experience in prestige skincare as an innovator and manufacturer, and through our own brand portfolio including Perricone MD and ESPA. We’re incredibly fortunate and excited to secure this opportunity to work with the Biossance team and further build on the brand’s strong awareness across the US.

“The fit within THG is perfect, with Biossance already generating c. $2 million in revenue across our retail sites in the past 12 months. Integration on to the Ingenuity platform will commence as soon as the deal is finalised”.