Beauty e-commerce group THG has announced the sale of its loss-making THG OnDemand division following the company’s undertaking of a strategic review.
The decision to sell came as part of THG’s efforts to simplify and streamline its operations amid a turbulent financial period for the group.
After initiating an extensive market-testing process in a bid to secure optimal value for shareholders, THG said that it opted to sell the trade and assets of THG OnDemand to a Newco led by the existing OnDemand management team and funded by advisory and investment firm, Gordon Brothers.
The spin-off corporate team will continue to be a client of THG Ingenuity, the group’s technology and operational services division.
THG also confirmed that its cycling equipment provider ProBikeKit had been acquired by Frasers Group during Q2 2023, in a 4 million pound transaction.
The company said that the FY23 financial impact had been incorporated into its existing market guidance, with discontinued categories contributing to an EBITDA loss of 14.6 million pounds in FY22.
In a regulatory filing, Matthew Moulding, THG CEO, said: “Through the years, our incubator division OnDemand has cultivated our talent, technology and trading strategies.
“I am delighted to see management and Gordon Brothers continuing the fantastic work of the OnDemand team, and I have no doubt the ProBikeKit business will continue to thrive under Frasers Group.
“We will remain close partners with both the OnDemand management team and Frasers Group through continued Ingenuity services.”