UK's Hut Group raises 1 billion euros for expansion

(Reuters) – British online retailer The Hut Group (THG) said it raised 1 billion euros ($1.10 billion) to help fund expansion, amid macro-economic and political changes arising from Brexit and the general election.

The new capital comprises a 600 million euro term loan, a five-year 150 million pound ($192.45 million) credit facility and a 200 million pound package provided to a new THG subsidiary, the company said in an emailed statement to Reuters.

Sky News first reported on Sunday about the Manchester-based company’s plans to raise the capital.

THG said it raised about 66 million pounds of primary equity from BlackRock Inc (N:) and Belgium-based investment company Sofina SA (BR:) to help the company expand its beauty and wellness brands as well as its e-commerce platform Ingenuity.

The capital will also be used for developments of content studios and offices at Manchester Airport, the company added.

The fund raise comes after British Finance Minister Sajid Javid said last week that investors were putting money into the United Kingdom after Prime Minister Boris Johnson’s landslide election win which has cleared the way for Brexit next month.

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