Unilever PLC ( UL ) is acquiring personal care brand Dr. Squatch for $1.5 billion. This is the company’s next big bet on male grooming products after the deal with Dollar Shave Club fell flat in 2023, resulting in its sale to Nexus Capital Management.

What Happened: The consumer goods giant announced on Monday its acquisition of Dr. Squatch from private equity firm Summit Partners, the Financial Times reported. This move is part of Unilever’s strategy to shift its portfolio towards more upscale and higher-growth areas.

Dr. Squatch, a US-based brand, specializes in natural soap, deodorants, shampoos, and other toiletries marketed at men. The brand’s direct-to-consumer sales model, viral marketing campaigns, and celebrity endorsements have fueled its rapid growth.

Unilever’s personal care division head, Fabian Garcia, praised Dr. Squatch’s “clever digital engagement strategies” and expressed plans to expand the brand internationally.

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Unilever’s previous attempt to break into the US razor market with the acquisition of Dollar Shave Club in 2016 proved disappointing. The company sold the business eventually after struggling to integrate it into the group.

Under the leadership of CEO Fernando Fernandez, Unilever ( UL ) is now focusing on rebalancing its portfolio away from low-growth food brands towards higher-margin personal care and wellbeing products. Earlier this year, Unilever ( UL ) acquired Wild, a premium, refillable cosmetics brand, and is reportedly seeking a buyer for healthy snack brand Graze.

Why It Matters: The acquisition of Dr. Squatch after Unilever’s failed attempt to crack the US razor market suggests the company’s decision to shift its focus to the fast-growing men’s personal care segment. 

Unilever’s acquisition of Dr. Squatch is also a testament to the brand’s successful marketing strategies, including its viral marketing campaigns and celebrity partnerships, which have contributed to its loyal customer base and rapid growth.

Price in Action: Unilever ( UL ) closed at a price of $60.68, experiencing 1% drop. In pre-market trading, the stock price is trading at $60.85, according to Benzinga Pro data.

Benzinga’s Edge Stock Rankings indicates Unilever ( UL ) stock shows moderate Momentum at the 64th percentile. Know the stock value of other men’s grooming brands.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.