Unilever PLC, the European giant behind Dove soaps, Becel and Ben and Jerry’s, has struck a deal to buy Seventh Generation Inc., a manufacturer of plant-based detergents and household cleaners.
According to someone familiar with the agreement’s terms, the transaction will cost Unilever roughly $700 million. The deal will allow Unilever to compete with rival Procter & Gamble in the U.S. markets for diapers, tampons, detergents and hand soap, segments that its competitor has traditionally dominated.
Founded in 1988, Seventh Generation had sales of more than $200 million last year. The Vermont-based company’s shareholders include its management; Catamount Ventures, a San Francisco venture-capital firm; private-investment funds; and Generation Investment Management LLP, a London-based fund created by former U.S. Vice President Al Gore.
“We look at this as having a multiplier effect for our business,” says Seventh Generation Chief Executive John Replogle. “We always aspired to be a billion-dollar brand. We see this as a springboard as opposed to throwing in the towel.”
