PARIS — Unilever has signed an agreement to acquire a majority stake in Nutrafol, a maker of wellness products.
Terms of the deal were not disclosed. WWD previously reported that Nutrafol had hired Jefferies to explore sale options, with a potential $1 billion valuation.
Unilever already holds a 13.2 percent share in the company through Unilever Ventures, its investment arm.
Nutrafol is the U.S.’ first-ranking dermatologist-recommended hair-growth brand in the U.S. Its product range addresses issues such as thinning hair and compromised hair health for women and men of all ages.
The brand, founded in 2016, takes a holistic approach to hair and leverages its patented Synergen Complex to target root causes affecting hair health, such as hormones, stress, lifestyle, metabolism, nutrition and aging.
Hair care is among the hottest product categories in beauty today, with investors honing in on the segment. According to Unilever, more than 114 million people in the U.S. experience hair health issues.
There are big plans afoot for the brand.
“As a result of its sophisticated in-house digital capabilities and scalable technology, Nutrafol is well-positioned to build on its e-commerce success and to grow its multichannel presence, including the network of more than 3,000 physicians who sell its products,” Unilever said in a statement. “With the majority of its revenue coming from a loyal customer base, Nutrafol is poised for sustainable, scalable and profitable growth.”
Giorgos Tsetis, cofounder and chief executive officer of Nutrafol, said Unilever will contribute resources and enable scale.
“Nutrafol and its holistic approach to hair health is the perfect complement to our growing portfolio of innovative wellness and supplements brands,” said Fernando Fernandez, president, beauty and well-being at Unilever.
Nutrafol, which is backed by private equity concern L Catterton, will continue to be New York-based and led by Tsetis. The brand will become part of Unilever’s health and well-being unit, which also includes brands such as Olly, Liquid I.V. and Onnit.
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