The Honest Company, purveyor of healthy & non-toxic household & personal care products, is up for sale, according to an article by Re/Code.
Sources say the company, co-founded by celebrity Jessica Alba, is in talks with larger, traditional consumer packaged goods companies who are interested in an acquisition.
Honest Company was founded half a decade ago in Los Angeles, and quickly grew in popularity among health-conscious new moms. It was reportedly valued at $1.7B when it raised its most recent private funding round in August 2015. The bulk of Honest Company’s revenue is said to come from sales directly through the company’s websites, but an increasing proportion of revenue comes from wholesaling to over 6,000 retailers such as Whole Foods, Costco, and Target.
The company is the brainchild of Jessica Alba, who came up with the idea for non-toxic baby products after using a detergent that caused her young child to break out in welts. Since then, the company has grown to offer a wide range of home products, cosmetics, hair care, and is developing nail-care products as well.
With companies such as Amazon and Alibaba reshaping traditional retail channels, other retail giants are scrambling to get in on the eCommerce action. Earlier this year, Walmart acquired eCommerce retailer Jet.com for $3B, and Unilever shelled out $1B for Dollar Shave Club. Honest Company reported generated over $275M in revenue last year. Only time will tell what the company’s desired sale price will be.