Dive Brief:
- Feminine care brand The Honey Pot has entered into a deal to be acquired by Compass Diversified for $380 million, excluding working capital and certain other adjustments upon closing.
- The Honey Pot will continue to be led by its current management that includes co-founder and CEO Beatrice Dixon. Existing owners and management will retain a significant minority stake in the company, per a company press release.
- The deal is expected to close in February, subject to customary closing conditions.
Dive Insight:
Launched by Dixon in 2012, The Honey Pot has become known for natural feminine care products that use plant-derived ingredients.
The company finished fiscal 2023 with estimated gross sales of about $121 million and $29 million of adjusted EBITDA. The brand also reported a 54% gross sales compound annual growth rate since 2020, according to an investor presentation detailing the acquisition.
Through the acquisition with Compass Diversified The Honey Pot is planning to introduce new products as soon as this year.
“We are excited to embark on this partnership with CODI, a firm that aligns seamlessly with our values and is dedicated to championing our vision of destigmatizing feminine care through accessible products and promoting holistic wellness, both inside and out,” Dixon said in a statement. “We believe that this partnership will not only enable us to sustain our commitment to innovation and education but will also empower us to continue cultivating a movement rooted in community and self-care.”
The brand has a 10-year innovation plan, which includes new product launches, according to Laura Tedesco, chief strategy and marketing officer at The Honey Pot.
“In 2024, we’re entering the body care category with our pH cleansers,” Tedesco said in an email. “Your skin is the largest organ in your body, and just as with our current collection, we’ve put together a really hydrating herbal-infused body cleanser that is pH balanced to support optimal skin health.”
The company hopes the launch will attract new customers to the brand, Tedesco said, adding that The Honey Pot’s household penetration is only around 4.5% right now.
The Honey Pot sells products via its website, as well as in more than 33,000 retail doors nationwide, including at Target, Walmart, CVS, Walgreens and Kroger.
