UK-headquartered e-commerce group THG has agreed to sell flavour manufacturing laboratory Claremont Ingredients to the Nactarome Group for £103m ($136.8m) in cash.
The divestment of Claremont from THG Nutrition aligns with its strategy to streamline the company, concentrate on core competencies and accelerate the move towards a net cash balance sheet.
THG operates through two consumer businesses, THG Nutrition and THG Beauty. THG Nutrition is led by the online sports nutrition brand Myprotein.
Nactarome Group, an international flavour specialist majority-owned by TA Associates, emerged as the successful bidder following a highly competitive process.
This sale represents a significant return on THG's acquisition of Claremont for £52m in late 2020.
Claremont was initially acquired to boost Myprotein's global licensing range and new product development.
THG CEO Matthew Moulding stated: "This disposal highlights the significant value embedded across THG's portfolio. My sincere thanks go to the entire Claremont team for their fantastic contribution and hard work.
"Finally, the decisions we are taking as a business to support our customers and grow Myprotein's market share aligns clearly with our wider strategy to streamline the group and focus on our core strengths, whilst maintaining a strong balance sheet."
Claremont has been financially beneficial for THG, generating significant cash since acquisition, with the proceeds from the sale contributing to reducing net leverage and borrowing costs.
For the financial year 2024 (FY24), Claremont's revenue was £14m, with adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) contributions of £7m and annual capital expenditure of less than £1m.
Post-disposal, THG anticipates a reduction in group EBITDA of £5m for FY25 and £10m for FY26.
Looking at the first half (H1) of 2025, THG's interim results are expected to align with the guidance provided at the Annual General Meeting, with adjusted EBITDA at around £24m. This reflects the impact of higher whey pricing year over year in the nutrition segment.
With stable whey prices and strong global demand, THG has adjusted consumer prices accordingly.
The group's cash and available facilities stood at £278m following a refinancing in the first quarter (Q1) of 2025, which significantly reduced gross debt.
Net debt before the proceeds from Claremont's sale was £330m.
In the second half of 2025 and for the full financial year of 2026, THG Nutrition is expected to deliver double-digit revenue growth, with plans to limit price increases to maintain market share and customer loyalty.
Myprotein has decided to cap price hikes in the second half of 2025, which is expected to boost the expansion of its global offline retail presence from 34,000 to a target of 100,000.
The customer-centric strategy will be backed by a £15, investment throughout 2025, leading to a projected group adjusted EBITDA of £50m for the second half of the year.
The financial implications of this investment approach are confined to FY25, with FY26 adjustments pertaining only to Claremont.
