The Manchester-based e-commerce giant has agredd to pay £43 million for Brighter Foods from Real Good Food
The Hut Group (THG), a Manchester-based e-commerce company specialising in taking brands direct to consumers, has agreed to acquire snack bar manufacturer Brighter Foods from Real Good Food in a £43 million deal. The firm said the acquisition will bring Brighter’s know-how and innovation in-house.
Brighter is a contract manufacturing business that generates annual revenues of about £20 million. The company’s infrastructure allows the production of one million bars a day at its factory in Tywyn, Wales.
The company’s client base comes from a wide of segments including slimming, sport, confectionery, organic, free-from. Brighter also manufactures its own range of bars under the Wild Trail brand, which is sold by Ocado.
Matthew Moulding, chairman and chief executive of THG, said: “We are delighted to announce our first major acquisition within THG Nutrition in 2021. Brighter highly complements our developed vertical integration strategy and strengthens our capabilities in the growing convenience and snack bar market. Nutritional bars are a high growth category for THG, with significant product extension opportunity across all our brands.”
THG Nutrition’s portfolio comprises Myprotein, Myvegan, Myvitamins, Exante and Command. The company said the deal will complement its recent acquisition of nutrition product suppliers Claremont Ingredients and David Berryman.
Moulding added: “The Brighter team bring a wealth of bar manufacturing and product development expertise, and in line with the Claremont and Berryman’s acquisitions, enables THG to significantly accelerate the launch of further product innovation into global markets, while increasing the proportion of THG Nutrition products wholly manufactured in-house.”
THG’s acquisition of Brighter is said to help reduce lead times for new product launches while ensuring product IP remains exclusive.
THG has become one of the world’s largest beauty and wellbeing businesses, following its IPO last year. The company raised £1.88 billion in the initial public offering and began trading on the London Stock Exchange. THG was valued at £6.8 billion at the end of last year.
Date published: 23 April 2021