Jessica Alba‘s fledgling consumer-products startup, Honest Co., could be acquired by industry giant Uniliver.
The maker of Dove soaps and Axe body sprays is in talks with Honest for a deal valued at over $1 billion, The Wall Street Journal reported Thursday. However, the figure is significantly lower than the $1.7 billion at which Honest was valued in a fundraising round last year.
While the talks are at an early stage, Honest hasn’t ruled out instead opting for an initial public offering instead, according to WSJ insiders.
Founded in Santa Monica, California, in 2001 by the “Sin City” actress, Honest Co. has since raised more than $200 million from outside investors, according to FactSet data, and in the event of a sale, it has pledged to pay some investors double their initial investment.
Aimed primarily at young mothers, like Alba herself, Honest sells disposable baby diapers, household cleaners, and personal-care and beauty products with an emphasis on “natural” or “green” ingredients, a niche into which Anglo-Dutch Unilever would then be expanding.
Honest currently generates roughly $300 million in annual revenue, WSJ reported.
Alba’s company has recently been slapped with a number of lawsuits alleging that it is not so honest about all of its ingredients. The products targeted include sunscreen and baby formula.