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Unilever will pay personal care brand Dr Squatch $1.5 billion as the consumer goods giant has another big bet on men’s grooming products after the acquisition of Razor Subscription Service Dollar Shave Club.
FTSE 100 Group on Monday agreed to privately purchase Dr Squat from its private equity company Summit Partners, and announced it would shift its portfolio into a more upscale growth area. According to several people familiar with the details, Unilever agreed to pay $1.5 billion.
Based in the US, Dr Squatch manufactures “natural” soaps, deodorizers, shampoos, and other toiletries for sale by men. Its products are sold directly to consumers through their own websites and third-party retailers.
That growth is driven by viral marketing campaigns and celebrity partnerships. This includes an ad featuring Hollywood actress Sidney Sweeney on a bubble bath and Mike Tyson on an ice bath.
Fabian Garcia, head of Unilever’s personal care unit, said the brand has built loyal supporters with a “smart digital engagement strategy.”
“Based on our success in the US, we are excited to expand our brand internationally and complement our offering with the fast-growing male personal care segment,” he added. Unilever declined to comment on the price he paid Dr. Squatch.
In 2016, Unilever paid $1 billion and acquired Dollar Shave Club, a fast-growing subscription leather startup, helping to beat the US razor market. However, the deal proved to be a disappointment, and Unilever sold the business in 2023 after struggling to integrate into the group.
Under Fernando Fernandez, who was appointed CEO in March, Unilever is seeking retransportation of its portfolio from low-growth food brands to higher margin personal care and welfare products.
Earlier this year, Unilever acquired Wild, which sells premium, refillable cosmetics. Meanwhile, the Financial Times reported last week that mayonnaise owners from Marmite and Hellmann are looking for buyers for healthy snack brand Graze.
Unilever is preparing to spin-off its ice cream division, including brands such as Magnum and Ben & Jerry, by the end of the year. The main list of businesses called Magnum Ice Cream Company is located on the Amsterdam Stock Exchange.
