Actress Jessica Alba’s Startup Could be Purchased for Over $1 Billion
Apparently, not everyone in Hollywood is an anti-capitalist.
Bath and body products giant Unilever is expected to purchase Fantastic Four actress-turned-entrepreneur Jessica Alba’s startup for more than a pretty penny, according to reports.
Unilever, the producer of Dove Soap and Axe cologne, is in discussions to purchase Alba’s startup, Honest Co., for over $1 billion dollars. Honest has yet to accept the deal and it is allegedly considering going public, the Wall Street Journal reports. The company was valued last year at $1.7 billion dollars, according to the Journal.
Honest Co. wouldn’t be the first big acquisition for Unilever this year. The company purchased the razor blade subscription service Dollar Shave Club in July for $1 billion dollars, Bloomberg reports.
Alba’s company generates some $300 million in revenue, a good chunk of change for Unilever to add to their portfolio. Honest would also give Unilever a foothold in the market for household and beauty products, Bloomberg reports. Additionally, Honest would bolster Unilever’s online presence, since Honest sells its products mostly online.
Honest produces childcare products, like diapers, as well as beauty products. The market for childcare and childrens’ products has increased exponentially in recent years, adding one more reason for the soap maker to purchase Alba’s company.
Since the company began in 2011, Honest Co. raised over $200 million dollars from outside investors, the Journal reports. Investors include Fidelity Management & Research Co., Lightspeed Venture Partners, and Wellington Management Co. If Alba and her partners agree to sell the company, they pledge to repay some investors and double their initial buy-in, the Journal reports.
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