The Honest Company, an eco-friendly consumer-goods firm co-founded by actress Jessica Alba, is receiving a $200 million minority investment from private-equity firm L Catterton.
The investment, announced Wednesday, would help Honest expand its business globally, increase its product supply and fund innovation, the company said.
L Catterton and Honest declined to disclose the size of the stake the private-equity firm would receive. The private-equity firm, formed in 2016 through the partnership of Catterton, LVMH and Groupe Arnault, invests in consumer-focused companies globally. Notable investments include French home-luxury brand Baccarat, fitness-center operator Equinox and medicines maker Zarbee’s.
Honest raised $297 million from its six prior funding rounds, according to data from Dow Jones VentureSource. The company was valued at $1.7 billion in 2015, but lost its so-called unicorn status as issues with products arose. Last year, the company recalled baby powder because of concerns it could cause skin or eye infections. It also recalled baby wipes because of concerns over mold. Honest also reformulated its laundry detergent following a label issue.
As a result of the product problems, sales growth stalled last year, The Wall Street Journal reported earlier this year.
The company was once seen as a promising competitor to home and personal-care companies Procter & Gamble Co. and Kimberly-Clark Corp. , growing to $300 million in 2016 from $60 million in sales in 2013.
The company recently announced an exclusive retail-distribution partnership with Douglas, a beauty retailer in Europe with more than 2,500 stores. By the end of this year, the company said it would have more than 80 new baby and beauty products.
“The Honest Company has tremendous brand equity, innovative and quality products, and a loyal customer following,” said Scott Dahnke, Global Co-CEO of L Catterton, in a release.
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