LONDON – Unilever is set to acquire buzzy biotech hair care brand K18, as part of a wider strategy to invest in high-growth premium categories, build up its “power brands,” and invest in research and development. The proposed purchase comes six months after WWD reported that K18 was exploring sale options although, at the time, the founders denied that any M&A conversations were taking place. K18 was founded in 2020 by Suveen Sahib and Britta Cox, and has been a pioneer of using social media to educate and engage consumers about the science of hair, according to Unilever. It did not reveal the terms of the deal, and said the transaction was expected to close in the first quarter of the new year. Vasiliki Petrou, Unilever Prestige CEO, said the acquisition “complements our fast-growing portfolio of premium, culturally-relevant consumer brands. What Suveen, Britta and the team have created is a testament to the importance of brands built on unparalleled science, product efficacy and community love.” Sahib said “nature is the best designer, and we’ve found that by understanding the biology of hair you can achieve true hair health and hair expression with less product, less time, and less frustration. We are elated to join forces with Unilever, which sees the value in our biology-first and biotech approach that is more sustainable and efficacious.” Unilever said K18’s range of six products helps to identify and address the causes of hair damage, and described the collection as “a favorite with both professionals and consumers.” It added that the brand’s novel molecule – K18PeptideTM – mimics the human keratin structure to reverse chemical damage on all hair types in minutes, “helping to replace complex hair treatment routines with immediate results.” The brand is distributed through professional salons, retail including Sephora, and ecommerce primarily in North America, the U.K. and Australia. In June, WWD reported that K18, which had early funding from Springboard Growth Capital, VMG Partners and True Beauty Ventures, among others, was considering a sale. At the time, industry sources said that K18 was working with Financo Raymond James to oversee the sale. The bank declined to comment at the time. Sahib, whose title is chief executive officer, told WWD there were no M&A talks going on. K18 debuted with its molecular repair hair mask, $75 for 50 mL, which launched with a multibillion-view TikTok campaign. The assortment has since expanded to include shampoos and a hair oil. The brand’s net sales are expected to surpass $100 million this year. During an analyst presentation in October, Unilever CEO Hein Schumacher said he wants to simplify and streamline the business and focus on the top 30 “power brands,” which are growing faster than the company average and which generate more than 70 percent of turnover. In beauty, those brands include Dove, Dermalogica, Paula’s Choice and Pond’s. Schumacher said that, going forward, Unilever would be looking for “value-accretive” bolt-on acquisitions, and plans to set a “higher, clearer” bar for the companies it buys. As part of that strategy, Unilever has disposed of its Elida Beauty division, which included haircare brands Tigi and Timotei.
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