Compass Diversified Acquires The Honey Pot Company in $380 Million Deal: A Game-Changer in Feminine Care
In a landmark move within the feminine care industry, Compass Diversified (CODI), a publicly traded holding company, has successfully acquired The Honey Pot Company, a Black-founded feminine care brand based in Atlanta. The all-cash deal, valued at an impressive $380 million, was announced by the companies on January 17, 2024.
The Honey Pot Company, established in 2012 by co-founders Beatrice Dixon and Simon Gray, has carved a niche for itself by offering a range of feminine hygiene products, including washes, menstrual pads, and tampons. The brand has gained substantial market presence, with its products available in over 33,000 U.S. stores, including major retailers such as Target and Walmart.
The acquisition comes with a strategic decision to maintain leadership continuity. Beatrice Dixon, who serves as the CEO and chief innovation officer, will continue to steer The Honey Pot under its new ownership. In a unique move, the existing management team will also stay on board, and both Dixon and her team will retain a minority stake in the company.
Elias Sabo, CEO of CODI, expressed confidence in The Honey Pot Company’s growth prospects, acknowledging the brand’s distinctive category ownership and unique positioning in the feminine care market. Sabo highlighted the tremendous growth opportunities that lie ahead for the brand and emphasized their shared vision for the future of personal wellness.
Beatrice Dixon, known for her vocal stance on wealth creation, shared her aspirations for The Honey Pot Company, stating that the deal aims to accelerate the brand’s plans to become the largest personal care brand globally. She emphasized the importance of financial success in contributing to communities and personal growth.
The acquisition unfolds against the backdrop of a challenging mergers and acquisitions landscape, with global activity at its lowest in a decade. In the U.S., deal activity witnessed a six percent decline in 2023. Despite these challenges, the magnitude of the CODI-Honey Pot deal has drawn admiration from industry experts.
CODI sees this acquisition as an opportunity for The Honey Pot to enhance brand awareness and capture a more significant share of the $17 billion personal care industry. Elias Sabo, in a call with investors, noted that, in a more favorable market for consumer products companies, The Honey Pot could have potentially commanded an even higher price, possibly twice as much.
Financially, The Honey Pot Company reported over $121 million in gross sales in 2023, with an adjusted earnings figure of approximately $29 million. The company has witnessed a remarkable increase of over 50 percent in gross sales since 2020.
The acquisition is slated to be finalized in February, marking a crucial milestone for both Compass Diversified and The Honey Pot Company. In the dynamic and competitive landscape of personal care, this strategic move is poised to reshape the industry and position The Honey Pot as a major player on the global stage.
With over a decade dedicated to women-led startups, Raven is a seasoned entrepreneur, strategic luminary, and passionate advocate. She's nurtured 500+ women-led businesses, securing over $100M in funding through her blend of strategic counsel, marketing mastery, and resource facilitation.