Matt Moulding's e-commerce retailer THG has agreed the sale of its Claremont ingredients business in a bid to slash debts and bolster its balance sheet.

THG, which owns the Cult Beauty and Myprotein brands, told investors on Wednesday it would sell Claremont in a £103million cash deal to 'fast-growth international flavour specialist', Bristol-based Nactarome Group.

It came as the group told shareholders it would 'limit' price hikes within its Myprotein nutrition business in efforts to boost market share, despite the impact record high whey prices have had on THG this year. 

THG has been working to simplify the business, having sold off its Ingenuity unit earlier this year, in efforts to reduce debt, bolster cash reserves and reduce borrowing costs.

Claremont is a flavour manufacturing and development laboratory for sports nutrition, with specialisms in bakery and beverages.

The business, which generated revenues of £14million last year, was acquired for £52million in late 2020 to accelerate Myprotein's global licensing range launch and aid new product development.

This 'key relationship' between Myprotein and Claremont will be protected through both a long-term supply contract and the broader capabilities Nactarome, THG said.

Chief executive and founder Moulding added: 'Claremont has been a huge success, building Myprotein's global licensing franchise from a standing start to partnering with category leading brands in just a few years.

'After receiving a highly competitive offer, the timing was right to realise that value. The level of interest we received is a testament to the quality of the business.'

The group had cash and available facilities of £278million as of 30 June, with net debts down £20million on the same time last year at £330million.

THG spun off loss-making technology platform Ingenuity in January to simplify operations, revive shareholder value, and bolster its finances, after a bruising first four years as a London-listed company.

Following the demerger, the group completed a debt refinancing deal up to 2029, conducted an equity raise, and entered the FTSE 250 Index.

But the group has lost its FTSE 250 status and its shares are down by around 96 per cent from their value in January 2021 when they listed for the first time.

THG returned to revenue growth in the second quarter, amid 'much improved' trading aided by the retailer's remaining nutrition and beauty divisions.

It told investors in June its nutrition bricks and mortar offering is now 'gaining significant traction', THG said, with products available in new territories across the UK, UK, Europe and Asia.

However, record high whey protein prices have weighed on the group, which saw first half adjusted earnings before nasties fall to £24million from £37.1million the prior year.

But recent whey price 'stability', as well as rising nutrition consumer prices and 'Myprotein's structurally advantaged business model', helped drive double-digit nutrition revenue growth across June and July. 

THG told investors that to 'prioritise long-term market share gains and customer loyalty', its Myprotein unit 'will limit price increases' in the second half to enable  'further acceleration' of its global offline retail growth. 

It added: 'This opportunistic pricing approach is in line with prior discussions with shareholders and will underpin market share growth and operating leverage for the full financial year 2026.'

But THG also told investors on Wednesday the sale of Claremont would reduced full-year adjusted earnings before nasties by £5million to £10million.

Moulding added: 'The decisions we are taking as a business to support our customers and grow Myprotein's market share aligns clearly with our wider strategy to streamline the group and focus on our core strengths, whilst maintaining a strong balance sheet.'

THG shares jumped 6.3 per cent to 32.5p in early trading, but remain down roughly 28 per cent for 2025.