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Jessica Alba's natural CPG brand The Honest Company sets terms for $400 million IPO

April 26, 2021

The Honest Company, a non-toxic lifestyle brand of baby, skin, and household products, announced terms for its IPO on Monday.

The Los Angeles, CA-based company plans to raise $400 million by offering 25.8 million shares (75% insider) at a price range of $14 to $17. New investor BlackRock intends to purchase $80 million worth of shares in the offering. At the midpoint of the proposed range, The Honest Company would command a fully diluted market value of $1.6 billion.

Co-founded by Jessica Alba, The Honest Company is a health and environmentally-conscious lifestyle brand that sells a variety of products through digital verticals. Its three product categories are Diapers and Wipes, Skin and Personal Care, and Household and Wellness. The company's popular diaper products act as an effective customer acquisition tool, allowing it to successfully cross-sell to 90% of its diaper customers.

The Honest Company was founded in 2011 and booked $301 million in sales for the 12 months ended December 31, 2020. It plans to list on the Nasdaq under the symbol HNST. It had been on our Private Company Watchlist since October 2014. Morgan Stanley, J.P. Morgan, Jefferies, BofA Securities, Citi, William Blair and Guggenheim Securities are the joint bookrunners on the deal. It is expected to price during the week of May, 3 2021.