THG PLC (LSE:THG) has announced a 10-year strategic partnership with beauty eCommerce retailer Maximo Group, whose websites include allbeauty.com and fragrancedirect.co.uk.
Initially, the deal will focus on 're-platforming' the websites onto THG’s Ingenuity platform by the end of June, THG said in a statement, with the platform also becoming Maximo's key UK operational partner, providing warehouse and fulfilment services from the second quarter of this year.
The partnership is expected to add over £150mln in gross merchandise value to the Ingenuity platform annually.
Matthew Moulding, chief executive officer of THG, said the agreement with Maximo "represents the early fruits of our focus on larger enterprise customers and underlines our position as the online partner of choice for the prestige beauty industry”.
He added: “I am delighted with the progress of our refocused sales team, with our pipeline continuing to build momentum."
THG shares added 3.67% at 66.04p in early trading on Thursday.
Broker Liberum said the deal is "a positive sign which shows that the shift in Ingenuity strategy to focus on bigger clients is starting to bear fruits", and it believes larger scale client wins are "key to a re-rating as it allows the group to leverage the excess capacity and meaningfully improve FCF and returns on capital".