(Bloomberg) -- THG Plc agreed to sell its luxury brands including Coggles to retail tycoon Mike Ashley’s Frasers Group Plc as part of a multi-year partnership.

The British e-commerce company, which runs hundreds of beauty and lifestyle websites, will also integrate Frasers’ customer credit and loyalty platform into its Ingenuity online retail service, it said in a statement Monday.

THG — formerly known as The Hut Group — has struggled with losses at Ingenuity and price surges for whey, a core ingredient in its protein shakes. The company’s stock has fallen more than 90% since its high-profile listing in 2020, giving rise to takeover speculation. Chief executive officer Matt Moulding has said he regrets the decision to join the London Stock Exchange.

THG’s shares rose as much as 5.5% in early trading, while Frasers edged up 1.8%. THG’s luxury division generated about £43 million ($54.4 million) in sales in 2023, the company said. The sale price wasn’t disclosed.

“We see this as a very sensible value-adding partnership that opens up clear revenue opportunities (Ingenuity, Nutrition), adds functionality (Frasers Plus) and tidies up the brand portfolio,” Andrew Wade and Grace Gilberg, equity analysts at Jefferies, wrote in a note.

(Updates with share prices.)

©2024 Bloomberg L.P.