Jessica Alba's Honest Co. Being Wooed By Unilever

Unilever plc (ADR) UL is keen to acquire actress Jessica Alba's co-founded Honest Co., if reports are to be believed. Based on last year's fundraising round the valuation of the deal, if struck, could range between $1 and $1.7 billion, according to the Wall Street Journal.

The move would come on the heels of U.K.-based Unilever's $1 billion Dollar Shave Club acquisition in August. Reports said Unilever paid $615 million premium for the yet-to-make-profit startup that offers a mail-order service for a monthly subscription or fee.

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However, it is premature to conclude that Unilever will acquire Honest Co., since the discussions are still just in the initial stages. That apart, the target company is also exploring the possibility of launching an IPO instead of being acquired, according to the Journal.

Unilever is apparently interested in having a presence in cleaning products and the diaper business, and the company sees the possible acquisition as offering more catalysts.

Honest Co. delivered about $300 million revenue on an annualized basis selling household cleaners, beauty products and disposable baby diapers and has established a loyalty base among mothers. Currently, its products are sold from its portal, although some items are available in Target Corporation TGT and Whole Foods Market, Inc. WFM.

At time of writing Friday, Unilever was down 1.75 percent at $46.01.

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