 "HUL to acquire 90.5% stake in Minimalist at enterprise value of Rs 2,995 cr")
Hindustan Unilever (HUL) on Wednesday announced it has signed a definitive agreement to acquire 90.5 per cent in premium actives-led beauty brand Minimalist through secondary buyouts at a pre-money enterprise value of Rs 2,955 crore, subject to adjustments as per transaction documents, and primary infusion.
The remaining 9.5 per cent stake will be acquired from the founders in two years as per terms set out in the transaction documents, HUL said in its earnings presentation.
“This marks another step in the transformation journey of its Beauty & Wellbeing portfolio towards evolving and higher growth demand spaces,” HUL said in its release.
The transaction is expected to be completed in the first quarter of the next financial year (Q1FY26).
Founded in 2020 by Mohit Yadav and Rahul Yadav, skincare brand Minimalist is one of the fastest-growing digital-first brands that sits at the intersection of beauty and actives-led science, HUL added in the release.
The business has an annual revenue runrate (ARR) of Rs 500 crore in a span of four years, and this acquisition will be part of the beauty & wellbeing division of the consumer goods major. The division is led by Harman Dhillon, executive director, beauty & wellbeing, HUL.
The current Minimalist team led by Mohit and Rahul will continue to operate the business in collaboration with HUL.
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Rohit Jawa, chief executive officer and managing director (CEO & MD), HUL, said: “This acquisition is another key step to grow our beauty & wellbeing portfolio in high-growth premium demand spaces. Mohit, Rahul and the team have created a great brand built on science, product efficacy, and transparency”.
Ritesh Tiwari, executive director, finance & IT, and CFO (chief financial officer), HUL, also said in the release: “We are excited to partner with the Minimalist team to unlock value through synergies and together scale the brand to greater heights by leveraging our complementary capabilities.”
Tiwari said that the beauty market in India is roughly around Rs 68,000 crore and half the market sits at the consumer cohort of affluent and affluent-plus.
“Minimalist has a brand squarely placed in that attractive beauty segment. The brand is deeply rooted in product efficacy and consumer love,” he added.
Tiwari further explained that the company’s strategy for the segment is to build the number one beauty portfolio in the country, and for that the premium segment becomes extremely important.
“Over the next few years, we want to add 900 basis points (bps) of portfolio shift in beauty & wellbeing. Minimalist is a brand which operates in this affluent and affluent-plus segment. The masstige price point gives us one more tool and arsenal to improve our premium segment position within beauty & wellbeing. We look at overall Hindustan Unilever today, the place where we are under index on premium is beauty & wellbeing,” Tiwari said.