After purchasing Dollar Shave Club earlier this year for $1 billion, Unilever has set their sights on possibly acquiring Jessica Alba’s Honest Company brand as well. The movie star and co-founder has seen her cosmetic brand grow substantially since it’s inception into the market in 2011. Known for being free of harsh chemicals, they have previously sold items like diapers, cleaning products and clothing before introducing cosmetics like lip gloss, mascara and blush last year.
The current bid to obtain the brand is set at $1 billion. While generous, it doesn’t nearly reach the $1.7 billion price-tag that Honest Company is estimated to be worth. The brand has also seen massive sales success, generating nearly $200 million from outside investors since 2011 and now generating $300 million annually in revenue. Honest Company has done so by selling their products online and in stores such as Target, Whole Foods and numerous other venders. Added to the situation is the possibility of the company going public, a possibility that reportedly isn’t out of the question. Though also responsible for Axe body spray and Dove soap, Unilever doesn’t currently own any brands competing with Honest Company.
The Wall Street Journal reportedly tested Honest Company’s products in order to determine how valid the brand’s mission towards health oriented products really is. Upon conclusion, they found that this was indeed the case, further helping the Honest Company’s image while cementing their product’s appeal in the eyes of interested consumers. This is especially important following a class action lawsuit that was filed against the brand regarding their sunscreen in which customers complained that it didn’t protect their skin from the sun’s rays as advertised. It will be interesting to see what conclusion Jessica Alba along with fellow co-founders Sean Kane, Brian Lee and Christopher Gavin choose in regards to Honest Company’s future.