The Honest Company® Accelerates Growth Strategy with Significant Investment from L Catterton
LOS ANGELES & GREENWICH, Conn.--(BUSINESS WIRE)--Jun 6, 2018--The Honest Company ® today announced a $200 million strategic minority investment from L Catterton, the largest and most global consumer-focused private equity firm in the world. The investment will accelerate The Honest Company’s innovation initiatives as well as provide access to operational capabilities that will bolster its supply chain and global reach.
“ L Catterton is the right partner for The Honest Company based on its expertise and extensive resources which will fuel our evolution into an iconic global brand,” said Nick Vlahos, The Honest Company CEO. “We will continue to execute against our strategy, which includes focusing our business on the baby and beauty categories. This investment will enhance our next chapter and accelerate the realization of our vision for the future.”
The Honest Company continues to be a disruptive force in e-commerce, retail and direct-to-consumer markets. This investment will further promote global scale by opening new distribution channels and unlocking expanded market opportunities. The Honest Company just announced an exclusive retail distribution partnership with Douglas, the #1 beauty retailer in Europe with more than 2,500 stores. This partnership will bring the full Honest Beauty line to seven European countries starting in spring 2019.
“The Honest Company has tremendous brand equity, innovative and quality products, and a loyal customer following,” said Scott Dahnke, Global Co-CEO of L Catterton. “The Honest Company has evolved into a lifestyle brand and has many channels to grow in natural baby, personal care, beauty and adjacent categories in the future. We look forward to partnering with the expert management team that is in place as we leverage our long-standing experience in the better-for-you space and extensive operational expertise to support The Honest Company as it drives omni-channel growth.”
L Catterton is known for identifying and investing in leading consumer companies around the globe, including strong mission-based consumer packaged goods companies. The firm has significant experience investing in natural and better-for-you brands. As a leader in the natural baby category and a trailblazer in clean beauty, The Honest Company aligns to L Catterton’s interest in disruptive consumer brands.
Under Vlahos’ leadership, The Honest Company has achieved double-digit retail growth of its diaper business and has doubled its distribution as well as its rate of innovation to deliver both safe and effective products. Now, The Honest Company is realigning its business in the categories and segments where global consumers and retailers are demanding more natural offerings – baby and beauty – and focusing its operations to ensure efficiency. By the end of the year, The Honest Company will launch more than 80 new and improved baby and beauty products including the Company’s most significant diaper innovation since its inception and a reimagined lineup of high-performance clean beauty products.
“It has always been my dream to grow The Honest Company into a global brand,” said Jessica Alba, founder of The Honest Company. “Our mission from day one has been to empower people to live happy and healthy lives, and we are always in search of new ways to bring that to life. This partnership will enable us to empower more people in more places by delighting them with products that meet their desire for safety, design and performance.”
The Honest Company will continue to be led by its current management team under Vlahos’ leadership, which will continue to be headquartered in Los Angeles.
Goldman Sachs & Co. LLC served as exclusive financial advisor to The Honest Company. The closing of the transaction is subject to customary closing conditions including regulatory approval and is expected to occur later this month.
About The Honest Company
Founded in 2012, The Honest Company ® is a mission-driven consumer products company dedicated to empowering people to live happy, healthy lives. Consumers seeking thoughtfully formulated, safe and effective baby, personal care and beauty products, along with education and support can find The Honest Company products across North America via honest.com and honestbeauty.com and at more than 17,000 retail locations. Beginning in spring 2019, consumers in Europe can find Honest Beauty at select Douglas retail locations. A leader in the natural baby category and a trailblazer in clean beauty, The Honest Company is committed to ensuring all families have access to basic necessities and the latest health information for safe growth and development — a commitment reflected in its ongoing partnerships with organizations such as Baby2Baby and Mount Sinai. The Honest Company is privately held and headquartered in Los Angeles, California.
About L Catterton
With over $15 billion of equity capital across six fund strategies in 17 offices globally, L Catterton is the largest and most global consumer-focused private equity firm in the world. L Catterton’s team of more than 160 investment and operating professionals partners with management teams around the world to implement strategic plans to foster growth, leveraging deep category insight, operational excellence, and a broad thought partnership network. Since 1989, the firm has made over 200 investments in leading consumer brands. L Catterton was formed through the partnership of Catterton, LVMH and Groupe Arnault. For more information about L Catterton, please visit lcatterton.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180606005988/en/
CONTACT: Media Contacts:
The Honest Company
Jennifer Kroog Rosenberg
Zeno Group for The Honest Company
Andi Rose / Andrew Squire
Joele Frank, Wilkinson Brimmer Katcher
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA CONNECTICUT
INDUSTRY KEYWORD: OTHER CONSUMER HEALTH HOME GOODS OTHER HEALTH BABY/MATERNITY RETAIL SPECIALTY OTHER RETAIL CONSUMER
SOURCE: The Honest Company
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PUB: 06/06/2018 12:01 PM/DISC: 06/06/2018 12:01 PM