Unilever impressed by Sydney Sweeney's bathwater soap, moves to acquire Dr. Squatch

Unilever acquired Dr. Squatch for a reported sum of $1.5 billion, but will the brand be able to maintain its edge?

Unilever has announced its acquisition of Dr. Squatch, the popular men’s grooming brand known for its viral marketing campaigns. The deal, signed in June, is expected to close later this year, though the financial terms remain undisclosed. However, sources close to the matter suggest that Unilever will pay $1.5 billion for the brand, which was sold by private equity firm Summit Partners.

Founded in 2013, Dr. Squatch quickly captured the attention of Gen Z men with its unique range of grooming products and collaborations with influencers and celebrities. Recently, the brand gained widespread attention for its partnership with actress Sydney Sweeney to release her signature ‘bathwater’ soap.

 

 

 

 

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The brand’s success has been largely attributed to its social-first marketing strategies, limited-edition collaborations, and organic buzz generated through platforms like Instagram and TikTok.

This acquisition marks a notable expansion for Unilever, which has a history of purchasing smaller, promising brands. Notably, Unilever acquired Dollar Shave Club (DSC) in 2016, another viral brand. However, the DSC acquisition eventually faltered as the company struggled to maintain its original appeal post-acquisition. According to Forbes, DSC’s former CEO Larry Bodner stated that Unilever’s corporate structure “neutered” the brand’s original vibe, ultimately leading to its sale in 2022 due to underperformance.

For Dr. Squatch, Unilever faces several challenges. Maintaining the brand's independent, creative culture will be crucial to retaining its loyal customer base. Forbes' Ranjay Gulati suggests that successful startups rely on three pillars: purpose, customer connection, and employee autonomy. If Unilever can preserve these elements while scaling the brand, it may avoid the pitfalls that led to DSC’s decline.

As Unilever moves forward, it will need to carefully balance expansion with staying true to Dr. Squatch’s identity to ensure the brand’s continued success.