Unilever to Acquire Premium Skincare Brand Tatcha for $500 Million

Recently, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Unilever has announced its acquisition of Tatcha, a leading premium skincare brand, with both parties having signed the relevant agreement. Reports indicate that the acquisition amount is close to $500 million. If confirmed, this acquisition of Tatcha would be one of Unilever’s largest deals in the beauty industry since its $1 billion purchase of Dollar Shave Club in 2016. The transaction is expected to be completed in the third quarter of 2019, with specific terms undisclosed.

Tatcha founder Victoria Tsai suffered from acute dermatitis, which made her pay close attention to skincare ingredients. She then embarked on a journey eastward in search of a more advanced and comprehensive approach to beauty. A chance encounter with a modern geisha during a trip to Kyoto changed Victoria’s perspective. She learned about classic Japanese beauty secrets passed down through generations, as well as the geisha’s unique approach to skincare—less is more. These time-tested skincare philosophies inspired Victoria.

In 2009, Victoria established an innovative R&D center called the Tatcha Institute in Japan and founded the corresponding luxury skincare brand, Tatcha, in San Francisco. Tatcha is a modern skincare brand rooted in the traditional geisha skincare culture of Kyoto, and its products have become popular Japanese exports to other regions worldwide. The brand is primarily sold through well-known retailers in the United States and maintains a presence on social media and related digital platforms.

Tatcha collaborates with scientists in Japan and the United States to develop products using traditional Japanese ingredients. Its proprietary formula, known as Hadasei-3, primarily comprises three anti-aging components: green tea, rice, and algae. Derived from the Japanese diet, Hadasei-3 has brought innovation to skincare research and development. The company focuses on natural formulations, exquisite design, and high-quality packaging, earning renown for its unique product experience. Its most popular products include the Luminous Dewy Skin Mist, The Silk Canvas, The Water Cream, and The Deep Cleanse Exfoliating Cleanser.

Tatcha has not only acquired numerous brands that appeal to young, fashion-conscious consumers to support its growth in the beauty sector, but has also invested in many early-stage independent skincare and cosmetics companies through Unilever Ventures, the venture capital and private equity arm of Unilever. These investments include True Botanicals, Dr. Roebuck’s, Nutrafol, and Beauty Bakerie. In recent years, Tatcha has experienced rapid growth with continuously rising sales, and is projected to achieve $100 million in net sales in 2019.

Following the completion of this acquisition, Tatcha will become part of Unilever’s portfolio, joining brands such as Murad, Dermalogica, REN Clean Skincare, Kate Somerville, Living Proof, and Hourglass.

Unilever, also known as the Unilever Group, was formed in 1929 through the merger of the Dutch margarine company Margarine Unie and the British soap company Lever Brothers. Headquartered in Rotterdam, the Netherlands, and London, the United Kingdom, the company oversees its food and home care businesses respectively. With a history spanning three centuries, Unilever’s success has endured through multiple significant historical periods. The company has consistently developed new products dedicated to improving people’s lives, such as helping them reduce time spent on household chores, enjoy nutritious and delicious food, and pay greater attention to personal well-being, family, and clothing care.

Vasiliki Petrou, Executive Vice President and Chief Executive Officer of Unilever, stated: “Tatcha is one of the premier beauty and personal care brands in North America. Rooted in Japanese pure skincare traditions, the brand is renowned for its unique product experience, distinctive natural ingredients, and superior efficacy. Iconic products such as The Water Cream and The Silk Canvas Primer have cultivated a loyal consumer base for the company. We look forward to collaborating with this exceptional team and supporting the brand’s continued global growth.”

Unilever views this acquisition not only as a business opportunity but also as a means to support women-founded enterprises. In an interview with the media, Vasiliki stated, “It is not easy for female entrepreneurs to start businesses, so I want to do my part to make the world a place where women can work better and achieve greater success. This is also one of the reasons why I wanted to collaborate with Victoria Tsai.”

Tatcha founder Victoria Tsai stated, “When we founded Tatcha, our goal was to build a brand that would last for at least 100 years; we believe this objective can be achieved with the support of Unilever.”

(Compiled by Tang Lulu)