The deal follows reports that Unilever is in talks to acquire Jessica Alba’s The Honest Co., for $1 billion.
Generating a turnover of over $200m in 2015, Seventh Generation has enjoyed double-digit compounded annual growth over the last ten years.
According to Unilever, the US manufacturer of plant-based detergents and household cleaners has long been a disruptor in the US marketplace, leading the industry in sustainable innovation while attracting new generations of conscious consumers.
When asked about the takeover, President of Unilever’s Home Care business Nitin Paranjpe explained:
“This addition to Unilever’s product portfolio will help us meet rising demand for high-quality products with a purpose.”
With a comprehensive product portfolio and a distribution network covering the ‘natural’ category in grocery, mass merchandise and e-commerce channels, Seventh Generation has been operating for over 28 years as a B Corp.
Certified as a business that is better for workers, better for communities and better for the environment, Seventh Generation manufactures products across a number of household and personal care categories including cleaning products, baby products and feminine care.
With the distribution of its products currently limited to North America and Canada, Unilever’s acquisition will enable Seventh Generation to scale globally, explained CEO John Replogle.
“Working together we are confident we can have a positive impact on the health of billions of people around the world, truly fulfilling our mission of nurturing the next seven generations while transforming global commerce,” he added.
For Unilever, the takeover will allow it to accelerate growth with its retail partners and connect with consumers in new ways, as it continues to reinforce its commitment to the Unilever Sustainable Living Plan.
Focusing on growing the business, while decreasing its environmental footprint and increasing its positive social impact, Unilever’s Sustainable Living Plan focuses on areas including the sourcing of raw materials and how consumers use their brands.
Joining its existing portfolio of purpose-driven brands, including Ben & Jerry’s and Dove, the addition of Seventh Generation will also help Unilever strengthen its foothold in the natural category – a key market for the corporation.
While no financial terms have been disclosed regarding the acquisition of Seventh Generation, according to Forbes, a source familiar with the deal says that Unilever is paying between $600 million and $700 million in cash.