THG Rejects McDonald's Bid for Myprotein
Deal News | Apr 23, 2025 | Business Cloud
THG has unequivocally rejected a bid worth between £400-600 million from former director Iain McDonald for its Myprotein brand. McDonald, a known figure in the e-commerce space with investments in companies like ASOS and currently part of Debenhams Group's board, spearheads Selkirk Group PLC. Selkirk was established to pursue acquisitions in undervalued companies across sectors such as consumer, technology, and digital media. The bid, considered largely unfunded and fraught with execution risks, was dismissed by THG, highlighting the undervaluation of Myprotein and the proposal's inherent complexities. With backing from figures like Angus Monro and Terry Leahy, Selkirk aimed for acquisition via shares and new equity issuance. Despite the rejection, THG remains focused on growth and cash generation following its recent financial restructuring and demerger of its tech platform.
Sectors
- Consumer Goods
- Private Equity
- Technology
Geography
- United Kingdom – THG, the target company, and Selkirk, the bidding company, are based in the UK. The article also discusses activities and figures prominent in the UK's investment landscape.
Industry
- Consumer Goods – The article revolves around THG, a company involved in the e-commerce sector, and its Myprotein brand, which deals in consumer nutrition products.
- Private Equity – The involvement of Selkirk Group PLC, a company aimed at acquiring undervalued firms, and Belerion Capital emphasizes private equity activities.
- Technology – The article mentions the demerger of THG's tech platform, Ingenuity, emphasizing the technology sector's relevance.
Financials
- £400-600 million – Proposed bid range by Selkirk for THG's Myprotein brand.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| THG | Target company | Company | An online retailer known for its brands in beauty, nutrition, and technology. |
| Myprotein | Target brand | Company | A brand within THG specializing in nutrition products. |
| Selkirk Group PLC | Bidding Company | Company | A shell company founded to acquire undervalued companies, led by Iain McDonald. |
| Iain McDonald | Bidder | Person | Former director of THG and current executive chair of Selkirk Group PLC. |
| Belerion Capital | Backer of Selkirk | Company | Investment firm associated with Iain McDonald, supporting Selkirk's acquisition activities. |
| Kelso Group | Backer of Selkirk | Company | An activist investor known for targeting THG in the past. |
| Matt Moulding | Founder of THG | Person | Founder of THG, playing a key role in its strategic operations. |