Unilever acquires US brand Dr. Squatch, citing ‘clever engagement strategies’

New Delhi: Unilever has signed an agreement to acquire US-based men’s personal care brand Dr. Squatch from growth equity firm Summit Partners. 

The acquisition, set to close later this year pending regulatory approval, underscores Unilever’s strategic push into premium, high-growth markets and highlights the rising influence of digital-first branding in the consumer goods sector. 

Financial terms of the deal were not disclosed, though global news reports state that Dr. Squatch’s valuation could be as high as $2 billion, with 2024 revenues exceeding $400 million.

The brand’s “social-first” marketing has fueled its rise, particularly among Gen Z and millennial men. Campaigns featuring bold humour, celebrity partnerships with stars like Sydney Sweeney and Nick Cannon, and culturally resonant collaborations, such as limited-edition soaps tied to SpongeBob SquarePants and a stunt involving Sweeney’s “bathwater”, have driven viral engagement and a loyal social media following.

Unilever’s acquisition reflects its focus on premiumisation and digital innovation. “Dr. Squatch has built a solid foundation and loyal following with highly desirable products and clever digital engagement strategies,” said Fabian Garcia, president of Unilever Personal Care. “Building on its success in the US, we are excited to scale the brand internationally and complement our offering in the fast-growing men’s personal care segment.”

Dr. Squatch’s direct-to-consumer (DTC) model, combined with its retail presence at major chains like Walmart, Target, and Boots in the UK, provides Unilever with first-party data and a proven e-commerce framework. 

This aligns with Unilever’s broader strategy to allocate 50% of its advertising budget to social media and expand influencer partnerships, as outlined by CEO Fernando Fernandez earlier this year. 

Josh Friedman, CEO of Dr. Squatch, commented, “Our mission is to inspire and educate men to be happier and healthier. With Unilever’s global reach, we’re thrilled to amplify our brand and connect with more consumers seeking high-quality, natural products.”