Compass Diversified Holdings has agreed to acquire a majority stake in the feminine care brand The Honey Pot for $380 million. 

WHO: Based in Atlanta, Georgia, The Honey Pot Co.’s feminine wash began as an idea in an apartment kitchen in 2012, fueled by co-founder Beatrice Dixon’s personal experiences and ultimate desire to change how the world uses and perceives feminine care products. Today, The Honey Pot Co. provides a complete feminine care system powered by plant-derived ingredients and clinically tested formulas with diverse products across the feminine hygiene, menstrual, consumer health, and sexual wellness categories. The Honey Pot Co.'s philosophy revolves around "normalizing the normal," breaking barriers in a traditionally stagnant consumer packaged goods category, and redefining the narrative around personal care.

Since its founding in 1998 and IPO in 2006, Compass Diversified Holdings has consistently executed on its strategy of owning and managing a diverse set of highly defensible, middle-market businesses across the niche industrial, branded consumer, and healthcare sectors. The company leverages its permanent capital base, long-term disciplined approach, and actionable expertise to maintain controlling ownership interests in each of its subsidiaries, maximizing its ability to impact long-term cash flow generation and value creation. The company provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility.

WHY: The investment from Compass Diversified will fuel product development and expand distribution.

IN THEIR OWN WORDS: “We are excited to embark on this partnership with CODI, a firm that aligns seamlessly with our values and is dedicated to championing our vision of destigmatizing feminine care through accessible products and promoting holistic wellness, both inside and out,” said The Honey Pot Co.’s co-founder, Beatrice Dixon. “We believe that this partnership will not only enable us to sustain our commitment to innovation and education but will also empower us to continue cultivating a movement rooted in community and self-care.” The brand is available in more than 33,000 stores across the US, including Target, Walmart, CVS, and Walgreens.

Ms. Dixon added, “I continue to be humbled by the journey of The Honey Pot Co., and I hope that both the creation of this business and where it stands today serve as a reminder that while doors are often closed, there is always space for passionate and visionary entrepreneurs. That space doesn’t have to be explored alone, either. Partnerships and investments, both big and small, enable the opportunity for your business to blossom and reach its full potential. We want to thank our prior investment partners, New Voices Fund and VMG Partners, for allowing us to do just that and for their tremendous trust and support as we have expanded our business to reach more humans in the past five years.”

CEO of Compass Diversified, Elias Sabo, commented, “Beatrice and her team have done an amazing job building The Honey Pot Co. into a leading feminine care brand that has distinctive category ownership and unique brand positioning. They have a strong leadership team, an efficacious line of products, and a track record of impressive innovation and category disruption. We believe they have tremendous growth opportunities on the horizon. This partnership is a testament to the importance of brands built on dedication to innovative products and fostering community. We are so excited to provide The Honey Pot Co. with the resources necessary to bring it closer to its goal of serving more people by being the number one ‘better-for-you’ personal care brand in the world.” 

DETAILS: 

• Compass Diversified Holdings is to acquire a majority stake in The Honey Pot for $380 million. The deal’s value excludes working capital and certain adjustments upon closing. 
• Industry sources estimate the annual sales to be around $120 million.
• Previous investors in the brand included New Voices Fund and VMG Partners.
• The Honey Pot’s current owners will retain a substantial minority stake in the company.
• Current management will remain in place, including Chief Executive and Chief Innovation Officer Beatrice Dixon, who founded the brand. 
• Perella Weinberg Partners served as exclusive financial advisor and Winston & Strawn LLP acted as legal counsel to The Honey Pot Co. Gibson, Dunn & Crutcher LLP represented The Honey Pot Co.’s management. William Blair & Company acted as exclusive financial advisor, and Ropes & Gray LLP acted as legal counsel to Compass Diversified.