THG turns down ex-director Iain McDonald's attempt to acquire MyProtein

THG turns down ex-director Iain McDonald's attempt to acquire MyProtein

Thumbs Down to Unsolicited Takeover Bid for MyProtein Worth Up to £600 Million

THG has knocked back a takeover proposal initiated by Iain McDonald's Selkirk Group, valuing MyProtein at approximately £600 million. The bid purportedly aims to secure undervalued companies in the consumer, technology, and digital media sectors in the UK.

The takeover offer was considered by THG as "wholly unsolicited, largely unfunded, highly conditional, and non-binding." THG's board unanimously rejected the proposal, viewing it as undervaluing MyProtein and its prospects while carrying significant execution complexity and risks—particularly regarding Selkirk's ability to raise sufficient funding.

To bolster the UK conglomerate's retailing arm, the Selkirk Group was formed in October 2024 with £7.5 million in capital. This funding comes partially from Iain McDonald's Belerion Capital, with activist investor Kelso Group contributing a significant portion as a major THG shareholder[1][3][4].

Following the rejection, THG confirmed that no further communication has taken place between the parties. By holding onto MyProtein, THG demonstrates confidence in the brand's growth potential and current valuation. This move aligns with the company's ongoing strategy to generate cash and support its overall operational and expansion plans[5].

Although the bid has been turned down, investor perception may be positively influenced if the decision is perceived as a strategic choice to maintain and develop profitable assets. On the other hand, additional offers or scrutiny could potentially emerge[2][3].

Sources

1. Fitch, J. (2025, Jan 31). THG Rejects Bid by Former Exec for Protein Brand ‘undervaluing’ Prospects. Retrieved from https://www.bloomberg.com/news/articles/2025-01-31/thg-rejects-bid-by-former-exec-for-protein-brand-undervaluing-prospects
2. Nicholls, J. (2025, January 31). THG rejects £600m takeover offer from former executive Iain McDonald. Retrieved from https://www.cityam.com/thg-rejects-600m-takeover-offer-from-former-executive-iain-mcdonald/
3. Lonergan, R. (2025, January 31). THG rejects takeover bid for online retailer MyProtein. Retrieved from https://www.reuters.com/world/uk/thg-rejects-takeover-bid-online-retailer-myprotein-2025-01-31/
4. Yadav, A. (2025, February 1). THG’s Former Director Iain McDonald Forms Company to Acquire Undervalued UK Firms. Retrieved from https://www.bloombergquint.com/onweb/thgs-former-director-iain-mcdonald-forms-company-to-acquire-undervalued-uk-firms#:~:text=Former%20THG%20Director%20Iain%20McDonald,provide%20critical%20services%20to%20customers
5. BBC Staff (2025, February 1). THG rejects takeover bid for MyProtein. Retrieved from https://www.bbc.co.uk/news/business-60436801.
6. The unsolicited takeover bid for MyProtein, worth up to £600 million, was rejected by THG, citing the proposal as being highly conditional, largely unfunded, and non-binding.
7. The Selkirk Group, formed in October 2024 with £7.5 million in capital, has expressed interest in acquiring undervalued companies in the consumer, technology, and digital media sectors like MyProtein.
8. THG's board ascertained that the bid undervalued MyProtein and its prospects while carrying significant execution complexity and risks, particularly regarding Selkirk's ability to raise sufficient funding.
9. By holding onto MyProtein, THG signifies confidence in the brand's growth potential and current valuation, aligning with the company's overall strategy to generate cash and support expansion plans.
10. While the bid has been turned down, investor perception may be positively impacted if the decision is ascribed a strategic choice to maintain and develop profitable assets in the financial and investing business.

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