**Unilever to Acquire Dr. Squatch: A Strategic Move in Men’s Grooming**
Unilever has announced its intention to acquire the men’s grooming brand Dr. Squatch for an undisclosed sum, with the deal expected to finalize later this year. The British consumer goods company revealed in June that it had reached an agreement to purchase Dr. Squatch from private equity firm Summit Partners. Although the acquisition amount was not initially disclosed, reports from the Financial Times suggest that Unilever will pay approximately $1.5 billion for the brand.
Founded in 2013, Dr. Squatch has rapidly gained popularity among Gen Z men, thanks to its diverse product offerings and innovative collaborations. The brand recently went viral for its partnership with Sydney Sweeney, launching a unique ‘bathwater’ soap that captured significant attention.
Unilever highlighted that Dr. Squatch’s success can be attributed to its viral, social-first marketing strategies, influencer partnerships, and culturally relevant limited-edition collaborations, which have fostered a loyal consumer base across social media platforms.
This acquisition aligns with Unilever’s strategy of investing in smaller, promising brands. A similar move was made in 2016 when the company acquired Dollar Shave Club (DSC) for comparable reasons.
**The Dollar Shave Club Experience**
Dollar Shave Club gained fame in the 2010s with its disruptive marketing approach, challenging industry giants like Gillette by offering affordable razors. The brand’s breakthrough came with a bold advertisement that broke industry norms. Unilever recognized the potential of DSC and acquired it, but over time, the brand’s original identity became diluted within the corporate structure.
Seven years post-acquisition, Unilever sold DSC to private equity firms, citing disappointing returns. Former CEO Larry Bodner noted that the corporate environment had stifled the brand’s original spirit, stating it “didn’t fit in a vanilla corporate entity.”
**What Lies Ahead for Unilever?**
Experts suggest that Unilever must navigate several challenges to ensure the success of Dr. Squatch. According to research by Ranjay Gulati, successful startups thrive on three key pillars: a strong business purpose, close customer connections, and employee autonomy. Unilever must avoid conflicts between Dr. Squatch’s unique identity and its corporate priorities, taking cues from Google’s acquisition of YouTube, which allowed the platform to operate independently.
Maintaining customer relationships will also be crucial. While enhancing brand visibility is essential, Unilever must ensure that the customer experience remains a priority, which could be challenging given its size and corporate structure.
**Conclusion**
As Unilever prepares to integrate Dr. Squatch into its portfolio, the company faces the task of preserving the brand’s essence while leveraging its growth potential. The lessons learned from the Dollar Shave Club experience will be vital in shaping Unilever’s approach to this new acquisition.
**FAQ**
**What is Dr. Squatch known for?**
Dr. Squatch is recognized for its natural men’s grooming products and innovative marketing strategies that resonate with younger consumers, particularly Gen Z.
