The deal was financed by an £18.5 million institutional fundraising from The Hut Group’s existing shareholders including Balderton Capital and Artemis.

Lookfantastic’s CEO Daniel Crown, who will join the board of The Hut Group, says that prior to holding discussions with The Hut Group the company had considered seeking investment to fund its growth.

The deal follows the acquisitions of Confetti Network and ‘I Want One of Those.com’ by The Hut Group in August.

Lookfantastic is an online retail company that sells hair and beauty products including makeup and hair straighteners. The Sussex-based company began trading online in 1997, and in 2008 also launched the lookmantastic.com website which focuses on male customers. In the year to March 2010 Lookfantastic declared a pre-tax profit of £2.4 million on a turnover of £20 million.

Founded in 2004, Cheshire-based Hut Group has 250 employees and in 2009 had a turnover of around £80 million. The company sells a range of products such as music and clothing through its websites, including Zavvi.com and Washbag.com.