In a significant move, Unilever Plc is in advanced negotiations to divest its Elida Beauty division, housing notable beauty and personal care brands like Q-Tips and Impulse, to private equity firm Yellow Wood Partners, industry insiders revealed.
Elida Beauty’s impressive portfolio includes popular brands such as Caress, TIGI, Timotei, Monsavon, St. Ives, Zwitsal, Ponds, Brut, Moussel, Alberto Balsam, and Matey, collectively contributing around $760 million in revenue in 2022.
Yellow Wood Partners has emerged as the frontrunner in the auction for Elida Beauty, with final deal negotiations currently underway. While the transaction’s estimated worth is below $1 billion, ongoing discussions could influence the final value.
This strategic move aligns with the consumer goods industry’s ongoing battle against rising costs in areas like sunflower oil, grains, packaging, and shipping. Unilever, renowned for iconic brands such as Dove and Ben & Jerry’s, has been proactively addressing these challenges, with CEO Hein Schumacher underscoring a concentrated focus on 30 key brands, constituting 70% of the company’s sales.
If realized, this transaction would mark Yellow Wood Partners’ second acquisition of non-core brands from Unilever within a year, following their successful purchase of Unilever’s personal care brand, Suave, in May.
Headquartered in Boston, Yellow Wood Partners specializes in consumer sector deals, with notable investments in brands like Isle of Paradise in the tanning industry and Dr. Scholl’s in foot care.
While official statements from Unilever and Yellow Wood Partners are pending, these negotiations signify a strategic shift within the consumer goods landscape.
