THG has offloaded its OnDemand business to the division’s management as the group focuses on its core operations.
The division – which includes entertainment etailer Zavvi and gifting specialist I Want One Of Those – has been snapped up its existing leadership team, with financial backing from investment firm Gordon Brothers.
THG said the Newco will continue to be a client of its digital services Ingenuity business.
The OnDemand deal completes the group’s sale of non-core assets announced earlier this year. It sold ProBikeKit to Fraser Group in the second quarter of 2023.
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THG said the proceeds from the sale of non-core assets is £4m, with both the discontinued categories contributing to an EBITDA loss of £14.6m in the year to 30 June 2022.
The group added that the financial impact has been incorporated into existing market guidance for the 2023 financial year, with discontinued revenues non-recurring after the third quarter.
Chief executive Matthew Moulding said: “Through the years, our incubator division OnDemand has cultivated our talent, technology and trading strategies.
“I am delighted to see management and Gordon Brothers continuing the fantastic work of the OnDemand team, and I have no doubt the ProBikeKit business will continue to thrive under Frasers Group.
“We will remain close partners with both the OnDemand management team and Frasers Group through continued Ingenuity services.”
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