Rumors are circulating that body care brand Tree Hut is exploring sale options.
Sources told WWD that Tree Hut, the Naterra-owned body and bath care brand that launched in 2002, had reportedly hired Goldman Sachs to explore a sale, but most recently had halted the process.
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Naterra’s chief executive officer, Jon Song, denied the speculation, saying the company is not for sale. Goldman Sachs declined to comment.
Tree Hut counts Target Corp., Ulta Beauty and Walmart among its retail partners.
The brand has benefited from virality in recent years around its Shea Sugar Scrub, a manual body exfoliant that has spawned a robust lineup of scented variations, such as “Cinnamon Dolce” and “Moroccan Rose.”
The hashtag #TreeHut has more than 1.2 billion views on TikTok, while #TreeHutSugarScrub has more than 350 million.
Sources said the brand’s net sales passed $200 million last year, and estimated the valuation to land between $400 million and $1 billion. Song said the business was growing and that those figures were inaccurate, but declined to elaborate further.
Some sources said the process had stalled over a misalignment in valuations, but that the company was still an attractive option to potential buyers.
It also comes as the deal market shows signs of life. As reported, K18 and Naturium had both also headed to market earlier this year. In tandem with its bankruptcy proceedings, Amyris is also exploring sale options for its stable of brands, including skin care brand Biossance and hair care brand JVN.
On the mass market side, Yellow Wood Partners acquired the Suave brand in North America from Unilever in May.
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