HUL Seeks CCI Nod For Minimalist Acquisition

SUMMARY

Last week, Hindustan Unilever announced the acquisition of D2C startup Minimalist for a cash consideration of INR 2,670 Cr

As part of the deal, HUL will also make a primary infusion of INR 45 Cr in Minimalist

While the FMCG company will acquire 90.5% stake now, it would acquire the remaining 9.5% stake in about two years

A week after it announced the acquisition of D2C startup Minimalist for a cash consideration of INR 2,670 Cr, FMCG giant Hindustan Unilever Ltd (HUL) has sought the Competition Commission of India’s (CCI’s) approval for the deal.

“The acquirer (HUL) proposes to acquire 90.5% shareholding of the target (Minimalist), with eventual acquisition of the remaining 9.5% shareholding of the target in about two years from the completion date as per the terms set out in the share purchase & subscription agreement executed by and between the parties,” the FMCG company said in its filing with the CCI.

As part of the deal, HUL will also make a primary infusion of INR 45 Cr in Minimalist. It would acquire the remaining 9.5% stake in about two years from the completion of the deal.

The FMCG major will acquire the shares from Minimalist founders Mohit Yadav and Rahul Yadav, Peak XV Partners, the VC firm’s seed investment platform Surge, and Twenty Nine Capital Partners.

The acquisition by HUL is a step towards transforming its beauty and wellbeing portfolio. Notably, Minimalist’s founders Mohit and Rahul will continue to run the business operations for a period of two years.

Minimalist currently has an annual revenue run rate of over INR 500 Cr, as per HUL.

It is pertinent to note that VC firm Peak XV Partners will make 10X returns on its investment in Minimalist, following the D2C skincare brand’s acquisition by HUL.

Founded in 2020, Minimalist develops and sells clinically tested skincare, haircare and body care products using ‘active’ ingredients. It has raised about $15 Mn to date.