HUL Pays INR 2,955 Cr to Acquire 90.5% of Minimalist
On January 22, Hindustan Unilever (HUL) declared that it had finalised a deal to purchase 90.5% of the high-end actives-led beauty brand Minimalist through secondary buyouts at a pre-money enterprise value of INR 2,955 crore, subject to primary infusion and adjustments based on transaction documents.
According to the conditions outlined in the sale paperwork, HUL stated in its presentation that it will purchase the remaining 9.5% ownership from the founders in two years. According to HUL's statement, this acquisition represents yet another phase in the transition of its Beauty & Wellbeing portfolio towards changing and higher-growing demand markets. It is anticipated that the deal will be finalised during the first quarter of the upcoming fiscal year (Q1FY26).
HUL Expanding its Beauty and Wellbeing Portfolio
The acquisition is another important move to expand HUL's beauty and wellness portfolio in high-growth, premium-demand areas, according to Rohit Jawa, CEO and MD of HUL. A fantastic brand based on research, product efficacy, and transparency has been established by Mohit, Rahul, and the team.
In the press announcement, Ritesh Tiwari, executive director of finance and IT and chief financial officer of HUL, added that the company is thrilled to collaborate with the Minimalist team in order to create value through synergies and jointly grow the brand by utilising our complimentary skills. Tiwari added that the affluent and affluent-plus customer segment accounts for half of the approximately INR 68,000 crore beauty market in India.
The brand Minimalist is firmly positioned in the alluring beauty market. He noted that the company has a strong foundation in customer love and product efficacy. Tiwari went on to say that the premium category becomes crucial to the company's goal for the market, which is to create the nation's top beauty portfolio.
HUL intends to contribute 900 basis points (bps) to its portfolio shift in beauty and wellness over the ensuing years. This upscale and affluent-plus market is served by the brand Minimalist. According to Tiwari, the masstige pricing point provides HUL with an additional weapon to strengthen its premium segment position in the beauty and wellness space.
About Minimalist
According to the statement from HUL, skincare brand Minimalist, which was founded in 2020 by Mohit and Rahul Yadav, is one of the fastest-growing digital-first brands that resides at the nexus of active science and beauty. The company has a four-year annual revenue runrate (ARR) of INR 500 crore, and this purchase would be a part of the consumer goods major's beauty and wellness segment. Harman Dhillon, executive director, beauty & wellbeing, HUL, is in charge of the division. The firm will continue to be run in partnership with HUL by the current Minimalist team, which is headed by Mohit and Rahul.
Nitin Konde
