Hut Group expansion goes on as tech firm gets into Ideal Shape

One of the UK's fastest-growing online retailers is continuing its relentless expansion with the takeover of Ideal Shape, a US-based dieting and sports nutrition brand.

Sky News understands that The Hut Group, which counts the former Tesco chief executive Sir Terry Leahy among its shareholders, will announce the purchase of Ideal Shape in the coming days.

It will be the latest in a string of purchases by The Hut Group, which has become one of Britain's most ambitious digital retailers.

The company, which recently bought Skinstore from the owner of Boots the Chemist, has focused on growing its own-brand portfolio, and now owns operations such as Myprotein, Grow Gorgeous and Myvitamins.

Launched in 2003, Ideal Shape is focused on female consumers and is growing revenues by more than 250% annually.

The Hut Group is understood to be funding the deal from its existing financial resources, and is said to be paying in the region of $100m for Ideal Shape.

Chaired by Richard Pennycook, the chief executive of the Co-operative Group, The Hut Group's investors include Lord Rose, the chairman of Ocado.

The Hut Group was established in 2004 by Matt Moulding, who is its chief executive, and John Gallemore to provide a technology platform for retailers requiring e-commerce services.

In 2014, the company sold a 19.2% stake to Kohlberg Kravis Roberts, one of the world's leading private equity firms, while Balderton Capital, a technology investor, owns an identical stake.

Blackrock, the world's biggest asset manager, is also a shareholder.

In 2006, the company switched to primarily operating its own websites or acquiring existing sites.

It now sells third-party branded or own-label health and beauty products across dozens of websites such as Lookfantastic, Exantediet and Mybag.

Last year, it launched beauty brand Elizabeth Arden's first ecommerce website in the UK and Ireland.

David Cameron and George Osborne lent their support to the Cheshire-based company last January when they visited The Hut Group's distribution site in Appleton, Warrington to endorse a pledge to create 2000 jobs in the north-west during the next three years.

In 2014, the company reported underlying profits up 50% to £22.6m on sales of £244m, a figure which included a 74% rise in international sales.

The Hut Group declined to comment on its acquisition of Ideal Shape or on the value of the deal.