Helping it strengthen its global reach and supply chain, Honest Co. has notched a $200 million investment from L Catterton. The size of the private equity firm’s stake in the company, which was founded by Jessica Alba, was not made public, Bloomberg reported.
Overseeing $14 billion in assets, L Catterton owns such beauty and wellness brands as Bliss and Tula. Honest Co. CEO Nick Vlahos said the firm’s experience in consumer brands was attractive to the company. “Having that knowledge base will be helpful,” Vlahos told Bloomberg. “We like the capabilities that they offer; they really believe in our strategy and they’re supportive of our team.”
But Vlahos did not say if the partnership could help Honest Co. seek an initial public offering (IPO). The company reportedly worked with Goldman Sachs and Morgan Stanley on IPO plans in 2016. After that time, Vlahos replaced former CEO and co-founder Brian Lee. The company also unveiled a partnership with Douglas GmbH to bring its products to seven countries in Europe.
Reports from 2016 indicated that Honest was generating $300 million in annual revenue after raising more than $220 million from investors. It has also had its share of personnel drama, including when Lee stepped down as CEO and was replaced by Vlahos, a former Clorox executive who has been tasked with positioning Honest as a more traditional packaged goods company.
Additionally, the firm has recently been battling lawsuits from consumer groups concerned about its product labeling. Honest cut 80 jobs in the first quarter of this year and has expanded into offline channels at stores like Target, Whole Foods, CVS and Nordstrom.
“Our team is focused on executing a plan that builds on our success to date and transforms Honest into a true omnichannel company that delivers the most authentic, engaging and seamless customer experience possible, wherever our customers shop,” Co-founder Jessica Alba had noted in an interview with TechCrunch.