Already a rich and famous Hollywood A-lister, Jessica Alba is also a powerful businesswoman. Alba may very well soon become richer — we are talking $1 billion richer — if the rumors regarding her latest business deal are true.
The consumer goods brand Unilever, which owns Dove and Axe, is reportedly in talks to buy Alba's Honest Company for $1 billion.
Co-founded by Alba in 2011, the company that sells non-toxic and ethical consumer products, has raised more than $200 million in funding since its launch. Honest has gone on to make about $300 million in annual revenue for selling its popular diapers and other "natural" baby products, along with "green" household cleaners and other beauty products. Of course, the company targets mothers and families who are living an organic lifestyle.
The Honest Company is currently valued at a whopping $1.7 billion.
That means if Alba does agree to sell her empire, she would be getting a smaller amount compared with the company's valuation, but who could honestly pass up a $1 billion deal?
However, it's believed that the two are only in the early stage of talks, so there is always the possibility that Honest will be willing to entertain other offers on the table.
This would mark the second large acquisition for Unilever if the deal is made, after it recently paid $1 billion for the Dollar Shave Club, a subscription service for razor blades, this past July.
Buying the Honest Company could allow Unilever to enter into the natural consumer product business. It would be a smart move since there is a growing market of premium baby products that focus on natural ingredients.
The problem is that Honest has run into some trouble with its products in the past. Consumers complained about the company's sunscreen a year ago after many were left with sunburn. A $5 million lawsuit was filed in Northern California District Court in September of last year that claimed many Honest products weren't truthful when it came to the list of natural ingredients in many of its soaps and cleaners. A lawsuit was also filed in New York this past February for falsely labeling its shampoo and body wash.
Honest detergent was also found to have sodium lauryl sulfate, the chemical it states it swaps for the safer sodium coco sulfate.
Arguably worst of all was the lawsuit filed in Los Angeles from the Organic Consumer Association that claims Honest baby food falsely uses the organic label.
Despite these lawsuits, the company is still a major empire and could help Unilever get more insight about customers since many of the Honest products are purchased online via its subscription service.
Only time will tell if Alba is willing to sell her business baby. The actress/businesswoman has a net worth of $340 million.
Source: The Wall Street Journal