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Unilever is paying $1.5bn for personal care brand Dr Squatch, as the consumer goods giant places another big bet on male grooming products, after its acquisition of razor subscription service Dollar Shave Club went awry.
The FTSE 100 group announced on Monday that it had agreed to buy Dr Squatch from private equity firm Summit Partners for an undisclosed sum, to shift its portfolio into more upmarket, higher growth areas. Unilever agreed to pay $1.5bn, according to several people familiar with the details.
US-based Dr Squatch makes “natural” soap, deodorants, shampoos and other toiletries that are marketed at men. Its products are sold directly to consumers through its own website and via third-party retailers.
Its growth has been fuelled by viral marketing campaigns and celebrity partnerships, including adverts featuring Hollywood actress Sydney Sweeney in a bubble bath and Mike Tyson in an ice bath.
Fabian Garcia, the head of Unilever’s personal care division, said the brand had built a loyal following with “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,” he added. Unilever declined to comment on the price it paid for Dr Squatch.
In 2016 Unilever paid $1bn to acquire Dollar Shave Club, a fast-growing subscription razor start-up, to help it crack the US razor market. However, the deal proved a disappointment and Unilever sold the business in 2023 after struggling to integrate it into the group.
Under Fernando Fernandez, who was appointed chief executive in March, Unilever is seeking to rebalance its portfolio away from low-growth food brands towards higher margin personal care and wellbeing products.
Earlier this year Unilever acquired Wild, which sells premium, refillable cosmetics. Meanwhile, the Financial Times reported last week that the owner of Marmite and Hellmann’s Mayonnaise is seeking a buyer for healthy snack brand Graze.
Unilever is preparing for a spin-off of its ice cream division — which includes brands such as Magnum and Ben & Jerry’s — by the end of the year. The primary listing for the business, which will be named The Magnum Ice Cream Company, will be on the Amsterdam stock exchange.
