// Asos is among a number of potential bidders for Feelunique and Cult Beauty
// Both Feelunique and Cult Beauty have been put up for sale by their current owners
// In April, Asos launched a £500 million convertible bond issue to invest in growth.
Asos is reportedly considering potential takeovers of online beauty retailers Cult Beauty and Feelunique.
According to Sky News, Asos is among a number of potential bidders for the two beauty specialists.
Both Feelunique and Cult Beauty have been put up for sale by their current owners.
- Asos targets £500m fundraise for global expansion
- Asos profits skyrocket 253% in first half as sales almost hit £2bn
- Feelunique posts first annual profit as sales smash £100m
Nothing is confirmed and Asos would only likely proceed with a bid for one of the two businesses, or may not make a bid at all.
Other online retail giants reportedly looking at making bids for Cult Beauty and Feelunique include The Hut Group and Zalando.
Beauty has become an increasingly important category for Asos and the online retailer has previously indicated interest in expanding it.
The news also comes after Asos revealed in its half-year trading update last month that sales of face and body products had increased by 114 per cent.
Sky News said both Cult Beauty and Feelunique were working with advisers on sale processes as they seek to capitalise on growing demand from online customers during the Covid-19 pandemic.
Sky News also reported that each could be likely to be valued “in the low hundreds of millions of pounds”.
Should a takeover of either platform be successful, it would become another major acquisition for Asos in less than six months.
In January it splashed out £330 million to takeover the Topshop and Topman fascias from the administrators of Arcadia Group.
In addition, in April Asos launched a £500 million convertible bond issue to invest in growth.