Unilever is expanding its portfolio with the acquisition of Tatcha. According to WWD, Unilever acquired the 10-year-old Japanese beauty company for $500 million. That makes it one of Unilever’s biggest acquisitions, though not as big as its $1 billion acquisition of Dollar Shave Club in 2016.
Tatcha joins the other beauty brands in Unilever’s portfolio, including Love Beauty and Planet and Murad Skincare, which the company acquired in 2015.
“Thanks to Vicky’s [Tsai, founder of Tatcha] passion and expertise, iconic products like The Water Cream and The Silk Canvas have become the cornerstone of long-term consumer loyalty,” said Vasiliki Petrou, Unilever evp and CEO of Prestige Group, in a statement. “We are really looking forward to working with this amazing team and to continuing to grow the brand globally.”
According to a 2018 Nielsen beauty report, products with “natural claims” made up 3.1% of the U.S. personal care market, generating close to $1.3 billion in sales in 2017. Tatcha is known for its all-natural materials, such as green tea and rice, and was reportedly nearing $100 million in sales this year.
According to Bloomberg, Unilever considered buying Drunk Elephant, another beauty brand, for $1 billion.