THG sells Claremont Ingredients to Nactarome Group for $136.8m

THG has agreed to sell Claremont Ingredients to Nactarome Group for £103m ($136.8m) in cash. The divestment aligns with THG's strategy to streamline the company, focus on core competencies, and accelerate the move towards a net cash balance sheet. Claremont was acquired by THG in 2020 for £52m and generated significant cash since then. The sale will contribute to reducing net leverage and borrowing costs.

THG Plc, a global e-commerce group, has agreed to sell Claremont Ingredients to Nactarome Group for £103m ($136.8m) in cash. The divestment aligns with THG's strategy to streamline the company, focus on core competencies, and accelerate the move towards a net cash balance sheet. Claremont was acquired by THG in 2020 for £52m and has since generated significant cash. The sale will contribute to reducing net leverage and borrowing costs [1].

THG Plc's CEO, Matthew Moulding, commented on the sale, highlighting the success of Claremont in building Myprotein's global licensing franchise. He noted that the disposal highlights the significant value embedded across THG's portfolio. The sale follows a highly competitive process, with Nactarome Group, majority owned by TA Associates, securing the acquisition. Claremont is a leading UK independent flavour manufacturing and development laboratory for sports nutrition, alongside specialisms in bakery and beverages [1].

The sale is expected to have a financial impact on THG Plc. Claremont's FY 2024 revenue was approximately £14m, with an adjusted EBITDA contribution of £7m and annual capex of less than £1m. The disposal is anticipated to reduce THG's FY 2025 and FY 2026 EBITDA by £5m and £10m respectively [1].

THG Plc's interim results for H1 2025, to be published in September 2025, are expected to show revenue performance in line with AGM statement guidance. The group's cash and available facilities stood at £278m following the Q1 2025 refinancing, which substantially reduced gross debt. Net debt of £330m (before net proceeds from the disposal of Claremont) is expected to be reduced to £230m (proforma) following the sale [1].

The divestment of Claremont is part of a broader strategic update for THG Nutrition. The company expects double-digit revenue growth across June and July 2025, with a target of 100,000 global offline retail doors by the end of 2025. This customer-first strategic initiative is supported by an investment of approximately £15m during 2025, resulting in a Group adjusted EBITDA of £50m for H2 2025 [1].

The sale of Claremont Ingredients to Nactarome Group marks a significant return on investment for THG Plc, contributing to its goal of a net cash balance sheet and further strengthening its financial position.

References:
[1] https://www.research-tree.com/newsfeed/article/thg-plc-disposal-h1-trading-and-nutrition-update-amend-2948431