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Unilever to Buy Cleaning Products Maker Seventh Generation
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With an aim to strengthen its position in home care and personal care products, consumer products giant Unilever Plc (UL - Free Report) recently announced the acquisition of Vermont-based Seventh Generation Inc. The terms of the deal, which is subject to customary regulatory approvals, were not disclosed.
Seventh Generation is known for natural and eco-conscious cleaning products, including plant-based detergents and household cleaners. The company recorded sales of more than $200 million last year.
Unilever’s acquisition of Seventh Generation will strengthen its portfolio with purpose-driven brands like Ben & Jerry’s and Dove. Further, this buyout will reinforce its commitment to the Unilever Sustainable Living Plan.
We note that Seventh Generation has been creating eco-friendly and effective products for the last 28 years. These products are not only profit-oriented but are meant to benefit people and the planet as well, and therefore attract new generations of conscious consumers. This deal will thus help Unilever to meet the rising demand for high-quality products with a purpose.
Notably, the Anglo-Dutch buyer has been on an acquisition spree since the last few quarters, especially in home care.
Most recently Unilever expressed interest in buying Honest Co., a company co-founded by actress Jessica Alba – which sells disposable baby diapers and other baby products, and also has a natural focus.
Last month, Unilever announced the acquisition of Stockholm-based Blueair. This acquisition will benefit asthma patients as the purifier can remove allergens, thereby making it easier for them to breathe easily. It will also complement the company’s water purification business.
We note that the company has been relying on deodorants and hair-care products to augment revenues this year, amid waning sales of its margarine and bread spreads. It also added personal care and other consumer brands, including Dermalogica and Kate Somervile, and the Zest soap brands, last year.
Apart from acquisitions, Unilever has also been shedding off assets in its battered food business. The category has been delivering sluggish growth due to a lack of innovation and declining demand. Demand has been weak due to saturated markets in the U.S. – the company’s major revenue source.
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Unilever to Buy Cleaning Products Maker Seventh Generation
With an aim to strengthen its position in home care and personal care products, consumer products giant Unilever Plc (UL - Free Report) recently announced the acquisition of Vermont-based Seventh Generation Inc. The terms of the deal, which is subject to customary regulatory approvals, were not disclosed.
Seventh Generation is known for natural and eco-conscious cleaning products, including plant-based detergents and household cleaners. The company recorded sales of more than $200 million last year.
Unilever’s acquisition of Seventh Generation will strengthen its portfolio with purpose-driven brands like Ben & Jerry’s and Dove. Further, this buyout will reinforce its commitment to the Unilever Sustainable Living Plan.
We note that Seventh Generation has been creating eco-friendly and effective products for the last 28 years. These products are not only profit-oriented but are meant to benefit people and the planet as well, and therefore attract new generations of conscious consumers. This deal will thus help Unilever to meet the rising demand for high-quality products with a purpose.
UNILEVER PLC Price and Consensus
UNILEVER PLC Price and Consensus | UNILEVER PLC Quote
Notably, the Anglo-Dutch buyer has been on an acquisition spree since the last few quarters, especially in home care.
Most recently Unilever expressed interest in buying Honest Co., a company co-founded by actress Jessica Alba – which sells disposable baby diapers and other baby products, and also has a natural focus.
Last month, Unilever announced the acquisition of Stockholm-based Blueair. This acquisition will benefit asthma patients as the purifier can remove allergens, thereby making it easier for them to breathe easily. It will also complement the company’s water purification business.
Further, on Aug 10, Unilever completed the purchase of Dollar Shave Club for about $1 billion, announced in July. Dollar Shave Club is a men's grooming brand, and this acquisition could prove particularly lucrative for Unilever, which does not own a direct-to-consumer men’s shaving product line yet, among its various properties.
We note that the company has been relying on deodorants and hair-care products to augment revenues this year, amid waning sales of its margarine and bread spreads. It also added personal care and other consumer brands, including Dermalogica and Kate Somervile, and the Zest soap brands, last year.
Apart from acquisitions, Unilever has also been shedding off assets in its battered food business. The category has been delivering sluggish growth due to a lack of innovation and declining demand. Demand has been weak due to saturated markets in the U.S. – the company’s major revenue source.
Unilever currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some well-positioned consumer staples stocks include The Clorox Company (CLX - Free Report) , Ingredion, Inc. (INGR - Free Report) and Omega Protein Corp. . While Omega Protein sports a Zacks Rank #1 (Strong Buy), Clorox and Ingredion hold a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
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