Jessica Alba's Honest Co. Raises $200 Million
The company, which sells baby and beauty products, sold a minority stake to L Catterton.
Jessica Alba's Honest Co. has raised a new round of $200 million.
The series was led by consumer-focused private equity firm L Catterton, and is being positioned as helping the e-commerce company accelerate its innovation initiatives and provide access to supply chain and global distribution. The investment comes a couple of years after Honest considered a sale to Unilever that ultimately fell through.
"L Catterton is the right partner for The Honest Co. based on its expertise and extensive resources which will fuel our evolution into an iconic global brand," said Honest CEO Nick Vlahos. "We will continue to execute against our strategy, which includes focusing our business on the baby and beauty categories. This investment will enhance our next chapter and accelerate the realization of our vision for the future."
Added L Catterton co-CEO Scott Dahnke, "We look forward to partnering with the expert management team that is in place as we leverage our long-standing experience in the better-for-you space and extensive operational expertise to support The Honest Co. as it drives omni-channel growth."
Six-year-old Honest Co., which Alba co-founded with tech entrepreneur Brian Lee, made a name for itself selling nontoxic baby products and household goods. At one time, it was valued at over $1 billion and considered an IPO. But the company has been beset by reports of stalled sales and flat revenue. Last year, Honest replaced Lee as CEO with Clorox veteran Vlahos.
Honest says that Vlahos has helped lead it to double-digital retail growth in its diaper business. It plans to launch more than 80 baby and beauty products by the end of this year.
"It has always been my dream to grow The Honest Company into a global brand,” said Alba. "Our mission from day one has been to empower people to live happy and healthy lives, and we are always in search of new ways to bring that to life. This partnership will enable us to empower more people in more places by delighting them with products that meet their desire for safety, design and performance."