Unilever PLC (LSE:ULVR) is reported to be paying $1.5 billion to acquire men’s personal care brand Dr Squatch from private equity group Summit Partners. The transaction, first announced on Monday, is part of Unilever’s strategy to grow its presence in premium and high-growth categories.
Citing ‘several people familiar with the details’ for the amount paid by Unilever, the Financial Times noted that Dr Squatch constituted another big bet on male grooming products after the company paid $1 billion to buy Dollar Shave Club back in 2016, only to sell it again in 2023.
Dr Squatch produces natural soaps, body washes, deodorants, hair care and skin care. The products are sold through digital commerce, retail and direct-to-consumer channels in North America and Europe. The company has gained traction with social-first marketing and partnerships with influencers and celebrities.
Fabian Garcia, president of Unilever Personal Care, said: “I am thrilled to welcome Dr Squatch into the Unilever family. Dr Squatch has built a solid foundation and loyal following with highly desirable products and clever digital engagement strategies. Building on its success in the US, we are excited to scale the brand internationally and complement our offering in the fast-growing men’s personal care segment.”
Josh Friedman, CEO of Dr Squatch, said: “I am incredibly proud of what the Dr Squatch team has achieved thus far. Our mission at Dr Squatch is to inspire and educate men to be happier and healthier, and we’re excited about our ability to amplify our brand and mission in this next chapter with Unilever. We’re just getting started at Dr Squatch, and we are thrilled about the opportunity to advance the brand’s scale, reach new heights internationally, and entertain and positively connect with more consumers seeking high-quality, natural products around the world.”
The transaction is expected to close later this year, subject to customary regulatory approvals and closing conditions.