UK’s The Hut Group acquires €1 billion to fund expansion

UK’s The Hut Group acquires €1 billion to fund expansion

British online retailer, The Hut Group (THG) said it had raised €1 billion ($1.10 billion) to help fund expansion amid macro-economic and political changes from Brexit and the general election.

The new capital of a €600 million term loan, a five-year £150 million ($192.45 million) credit facility, and a £200 million package provided to a new THG subsidiary according to the company.

THG said also said it raised about £66 million of primary equity from BlackRock Inc and Belgium-based investment company Sofina SA in order to help the company raise its beauty and wellness brands as well as e-commerce platform called Ingenuity.

The capital will also be used for development of content studios and offices at Manchester Airport.

The fund raise comes after British Finance Minister Sajid Javid said last week that investors were putting money into the United Kingdom after Prime Minister Boris Johnson’s landslide victory in the elections which cleared way for Brexit next month.