UK-based online health and beauty retailer The Hut Group (THG) has acquired British cosmetics contract manufacturer and developer Acheson & Acheson.

Reported by The Financial Times to be valued at around £60m, THG is looking to use the deal to increase its in-house production of makeup products.

Established in 1992, Acheson & Acheson manufactures a wide range of skincare and haircare products, including its own skincare brand Ameliorate, which is targeted at Keratosis Pilaris patients.

“We have made a significant investment and one that uniquely positions THG to make a step-change in its innovation.”

Ameliorate is marketed worldwide through speciality retailers such as Space NK Apothecary, Selfridges, Boots, Harvey Nichols, Liberty’s and Marks & Spencer.

Commenting on the deal, THG CEO Matthew Moulding said: “In Acheson & Acheson, we have made a significant investment and one that uniquely positions THG to make a step-change in its innovation, operational excellence and manufacturing capacity.”

The proposed acquisition is expected to strengthen THG’s infrastructure, adding a 78,000ft² production facility in Somerset and a packaging, storage and distribution facility in Wiltshire to its portfolio, which currently includes a one million square foot Cheshire-based facility and Kentucky-based facility in the US, as well as a production and logistics centre in Poland.

This extension to THG’s facilities will allow the company to offer next-day delivery to Europe.

THG is also planning to invest approximately £50m in its European and US infrastructure as part of future expansion plans.

Investment banking firm Baylor Klein advised Acheson & Acheson on the deal, while THG was advised by Travers Smith.

In May this year, THG announced the acquisition of specialist eye cosmetics brand Eyeko.