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The brand, which touts a lineup of baby products billed as being free of harmful chemicals, has hired Jefferies and Morgan Stanley to find potential buyers, the New York Times reported, citing sources familiar with the matter. The Honest Company is said to be seeking a valuation of more than $1 billion.
A spokesperson for The Honest Company confirmed it “recently engaged bankers to ensure we understand our value in the market, as is common business practice.”
“We are always open to new growth opportunities – especially those opportunities that allow us to provide more access to consumers demanding high quality, safe and effective products while still driving our mission forward,” the spokesperson said in a statement.
The Honest Company is a “profitable business” and has “seen consistent 20-30% growth over the last year alone,” the company added. Former Clorox executive Nick Vlahos currently serves as its CEO.
Founded in 2011 by Alba, business partner Brian Lee and other investors, The Honest Company grew rapidly in its early years. The brand earned uniform status in 2015, when it raised funds at a $1.7 billion valuation, and nearly went public in 2016.
However, the company’s sales growth has stalled in recent years. In 2017, the brand reached a $1.55 million settlement after a lawsuit alleged it had misled customers about ingredients found in its laundry detergent and other cleaning supplies.