Unilever to sell portfolio that includes Q-tips, Noxzema

Dive Brief:

Consumer goods giant Unilever’s Elida Beauty portfolio will be sold to private investment firm Yellow Wood Partners for an undisclosed amount. The transaction is expected to close by mid-2024 following closing and regulatory approvals, according to press releases from both companies.
Unilever in 2021 carved out the Elida portfolio to include its Q-tips, Tigi, Caress, Timotei, Impulse, Monsavon, Fissan, Williams, Noxzema, Brylcreem, V05, Lever 2000, Badedas and Matey brands. The next year it added Alberto Balsam, Brut and the North American and Europe business of Pond's and St. Ives. The business generated some 800 million euros (about $873 million as of press time) last year, Unilever said.
The deal doesn’t include the Pond's and St. Ives businesses beyond those regions, per the release. Yellow Wood's portfolio already includes Suave Brands, Dr. Scholl's and Scholl International and Beacon Wellness Brands, among others.

Dive Insight:

Under newly arrived CEO Hein Schumacher, Unilever’s executive team and portfolio have both been in transition this year.

In October the consumer products conglomerate said it would sell a majority stake in Dollar Shave Club to private equity firm Nexus Capital Management. Unilever had acquired the men’s grooming startup in 2016 for about $1 billion, at a time when new direct-to-consumer brands were disrupting the market with the promise that superior customer data and a bypassing of wholesale would steal market share.

The space has come back to earth, however, with many brands embracing wholesale in order to boost sales and even acquire customer feedback at scale. Several DTC brands have watched their valuations shrink from unicorn status.

Monday’s announcement shows that legacy brands are also on the chopping black as giants like Unilever seek to trim their holdings. Yellow Wood Partner Dana Schmaltz noted that the Elida carve-out will be the fourth from a major CPG company in the last four years.

“Elida Beauty has an exciting future following the proposed acquisition by Yellow Wood Partners and I look forward to the next stage of our journey,” Elida Beauty CEO Jean-Laurent Ingles said in a statement.