Beauty

Unilever to acquire haircare brand K18

CPG conglomerate Unilever, pending approval. Terms of the deal, which is expected to close in the first quarter of 2024, were not disclosed.

K18 was founded in 2020 by Suveen Sahib and Britta Cox, and launched with a single leave-in conditioner made with its proprietary K18 Peptide treatment that gained traction on platforms like TikTok as well as among professionals. Unilever, in a statement, lauded the brand as a “pioneer of using social media to educate and engage consumers about the science of hair”. It’s since expanded its line to six products, including a shampoo and hair oil.

The brand’s fast growth made it a prime M&A candidate for the beauty industry. Analysts say potential acquirers are seeking out companies that specialise in biotech with strong hero products that break through the noise in a crowded industry. Per estimates, around 700 brands in beauty are poised for acquisitions over the next several years. M&A is a favoured exit strategy for beauty brands; Olaplex, also known for its science-backed haircare and hero products, went public in 2021 and shares have dropped 89 per cent since its listing.

K18 will sit under Unilever’s Prestige category, a focal point for growth for the company.