Unilever to Buy U.S. Home and Personal Care Company Seventh Generation -- Update

By Saabira Chaudhuri 

LONDON -- Unilever PLC has agreed to buy a Vermont-based maker of plant-based detergents and household cleaners, a deal that gives it a foothold in the fast-growing market for "natural" cleaning products.

Terms of the deal weren't disclosed.

Privately held Seventh Generation Inc. had sales of more than $200 million in 2015 and has seen double digit compounded annual growth over the last 10 years according to Unilever.

The deal comes after The Wall Street Journal recently reported that Unilever was in early-stage talks to buy Honest Co., the consumer-products retailer co-founded by actress Jessica Alba that claims to avoid using harsh chemicals.

That deal would have set Unilever back by over $1 billion, according to people familiar with the acquisition. The price tag for Seventh Generation will likely have been smaller given that Honest generates roughly $300 million in annual revenue.

Unilever said Seventh Generation's products play in the natural category, selling online and in stores. The company sells diapers and tampons in addition to detergents and hand soap.

Unilever in August paid $1 billion to acquire Dollar Shave Club, a premium to the $615 million valuation that company fetched a year earlier. The fast-growing but unprofitable startup provides a mail-order service that ships disposable razors for a flat monthly fee.

Write to Saabira Chaudhuri at [e-mail]

(END) Dow Jones Newswires

September 19, 2016 14:38 ET (18:38 GMT)

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