THG shareholders agree to private Ingenuity spin off

Beauty and technology conglomerate THG has announced that the majority of its shareholders–amounting to 88.71 percent–have agreed to the demerging of its Ingenuity subsidiary.

Plans for such a move emerged in THG’s latest H1 report, published back in September, in which it revealed an intention to make THG Ingenuity, the commerce-focused subsidiary of the group, into an independent private company at an equity valuation of up to 100 million dollars.

It comes as part of a wider strategy initiated at THG with the mission of maximising shareholder value. Post-demerger, the group itself would consist of THG Beauty and THG Nutrition.

Evidence that THG wanted to funnel more efforts into its Ingenuity business have been apparent for a months, and particularly became prominent upon the appointment of its first chairman, Alistair Crane, back in the beginning of 2024.

Under Crane, Ingenuity set out to accelerate growth in core markets, including the US, as well as adding Enterprise partners in core categories like nutrition, wellness and beauty.

With a merger now in sight, THG can potentially move forward on pre-announced plans to raise approximately 75 million pounds by way of a placing and subscription, with additional proceeds from a retail offer of new ordinary shares of 0.005 pence each.

Performance at Ingenuity remained promising in the Q3 of 2024, with THG CEO, Matthew Moulding, stating that the subsidiary had welcomed a “solid quarter” that rewarded the “significant overhaul of their respective operating models during 2022 and 2023”.