Unilever has agreed on a deal to acquire digital-led skin care brand Paula’s Choice as part of its drive to strengthen its portfolio with high growth products.
Founded by Paula Begoun in 1995, the brand is known for its innovative and high performing cruelty-free products. It is distributed through a global direct-to-consumer (DTC) e-commerce operation and select prestige retailers in North America, Europe and Asia.
The company’s digital support platforms are said to offer tools that “demystify the science behind skin care”. These include an ‘Ingredient Dictionary’ that breaks down the research behind nearly 4,000 ingredients and an online hub offering skin care advice. The business is expected to generate net sales of more than $300m this year.
Unilever is buying Paula’s Choice Skincare from private equity firm TA Associates. Financial terms were not disclosed, although reports suggested the deal was worth around $2bn.
The brand will become part of Unilever Prestige. The unit’s EVP and CEO, Vasiliki Petrou, said: “Paula’s Choice is a true pioneer in the digital space for beauty and has created a mission-based brand rooted in truth and transparency. We can’t wait to introduce the brand and its iconic products to an even bigger audience.”
Begoun added: “With Unilever we can build on our work and vision spanning 26 years of creating brilliant products, and by giving people the self-confidence that comes from knowing they are taking the best care of their skin possible.”
NAM Implications:
- Although already a global direct-to-consumer (DTC) e-commerce operation and select prestige retailers in North America, Europe and Asia…
- …think what access to the Unilever footprint could bring.
- Quite apart from what the brand’s online DTC expertise could bring to Unilever.
