THG Plc has ended talks with Apollo Global Management Inc. in the latest failed takeover attempt of the struggling UK online retailer.
The British company, which operates hundreds of beauty and lifestyle websites, said in a filing Friday that after a short discussion with the New York-based private equity business it has become clear there is “no longer any merit in continuing to engage with Apollo.”
Formerly known as The Hut Group, the company co-founded by Chief Executive Officer Matthew Moulding has had a bumpy ride since its 2020 listing due to governance concerns, the surging price of whey — which it uses in its protein shakes — and speculation over the future profitability of its Ingenuity unit, which helps other retailers sell online. The shares are still trading well below the IPO price.
Entrepreneur Nick Candy last year walked away from making an offer for THG, as did a rival consortium consisting of Belerion Capital and King Street Capital Management. At the time people with knowledge of those bids said Manchester-based THG did not engage with either party or grant any due diligence access over concerns about the levels of debt in both proposals.
THG said Friday that the board remains fully confident in THG’s strategic direction and long-term prospects as an independent company
Earlier this year THG announced a strategic review of loss-making businesses outside of its core beauty, nutrition and Ingenuity platforms. The review is intended to simplify the business.
