Unilever (UL) is reportedly in early-stage discussions to buy Honest Company, a baby care product retailer co-founded by actress Jessica Alba, a deal that would add to the Anglo-Dutch company's recently active list of shopping. The purchase could also bulk up the company's monthly subscription offering.
The Wall Street Journal reported the news citing people familiar with the situation.
The London-based Unilever could buy Honest for more than $1 billion but much less than $1.7 billion, the report said citing the people, adding that the company was valued at $1.7 billion in a fundraising round last year. The report also said the discussions are still in early stages and Honest could instead seek an initial public offering.
The Santa Monica, CA-based Honest was founded in 2011 by Alba, Christopher Gavigan, and two others. It sells eco-friendly products ranging from baby diapers and feeding products to laundry detergents to sun screens. Since its inception, it has raised $222 million in four rounds from 10 investors, according to database Crunchbase. Investors include Institutional Venture Partners, Alliance Bernstein, and General Catalyst Partners.
Honest reportedly generates about $300 million in annual revenue and the majority of consumers buy products through the website on a monthly subscription package.
Over the past couple of months, Unilever has been on a shopping spree to boost its personal care line-up. In July, the company acquired the Venice Beach, Calif.-based Dollar Shave Club in a deal reported to be worth $1 billion.
Founded in 2012 and based in Venice Beach, Calif., Dollar Shave Club gives its 3.2 million members a lot of bang for their buck. It peddles "a great shave for a few bucks a month," selling a range of bargain-priced blades-at $1, $6 and $9, razor handles included-and grooming products from Dr. Carver's Shave Butter to One Wipe Charlies billed as "peppermint tingling flushable buttwipes for men."
