HUL Completes Acquisition Of 90.5% Stake In Minimalist Parent For Rs 2,706 Crore

Hindustan Unilever Ltd., has finalised its acquisition of 90.5% stake in Uprising Science Pvt., the company that owns 'The Minimalist' skincare brand. The transaction, valued at Rs 2,706 crore, was executed through a blend of primary infusion and secondary acquisition for a total cash consideration, according to an exchange filing on Monday.

The procedure was as outlined in the share purchase and subscription agreement. This acquisition had received approval from the Competition Commission of India last month.

The development comes ahead of the release of fourth quarter results by HUL on April 24.

The acquisition of Minimalist marks one of the largest deals in the skincare industry in recent years. Besides, it underscores the trend of consolidation among new-age brands—which often encounter difficulties in scaling beyond a certain point—being acquired by legacy FMCG companies.

Founded in 2020, Minimalist sells a range of ingredient-based products, including sunscreen and serum. The Jaipur-based direct-to-consumer brand generated a revenue of Rs 350 crore in the financial year-ending March 2024, an 86% jump over last year, according to Tracxn.

On Monday, HUL's scrip closed flat at Rs 2,351 apiece on the NSE, compared to an 1.15% advance in the benchmark Nifty 50. The stock has risen 5.35% in the last 12 months and 1.04% on a year-to-date basis.

Among the 44 analysts tracking the company, 28 have a 'buy' rating on the stock, 13 recommend a 'hold' and three suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price for the stock is Rs 2,601, implying a potential upside of 10.6%.