DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
City Council consideration of an Economic Development Incentive Fund (EDIF) Grant Agreement with The Hut Group.
SUMMARY:
This ordinance authorizes a performance-based Chapter 380 EDIF Grant Agreement with The Hut Group valued up to $500,000, based on the relocation of the company's US Divisional Ingenuity Headquarters and the creation of 165 new full-time jobs earning $70,000 or more annually in Downtown San Antonio.
BACKGROUND INFORMATION:
Founded in 2004 and headquartered in Northwich, Cheshire, United Kingdom, The Hut Group is a private, British e-commerce company that operates over 100 international websites selling health, beauty, and lifestyle products, in addition to a business-to-business division that includes several web hosting brands. The company's investors include KKR, BlackRock, Sofina, and Bladerton Capital, as well as established retailers Sir Terry Leahy and Lord Rose.
In 2017, the company received a significant investment from Old Mutual Global Investors, which allowed it to purchase Glossybox, luxury spa brand ESPA, and RY, a major online hair and beauty store in Australia. With the acquisition, The Hut Group became the #1 online retailer for health and beauty products in Australia, and expanded its presence to Berlin, Germany as well.
The company is regarded as a premier European technology company, and was valued at more than ?2.5bn ($3.5 billion) in 2017, making it one of the most valuable private companies in the United Kingdom. The company has over 3,000 employees and had sales of $990 million in 2017.
As part of this project, the company is looking to relocate its U.S. Divisional Ingenuity Headquarters and create 165 new, high-paying full-time jobs over five years at The Commerce Building, located at 314 E. Commerce Street. The location will be a launching point for the company's growth in the U.S. and for operations...
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