Unilever has acquired luxury skincare brand, Tatcha, in a deal that is said to have a price tag of almost US$500 million.
Founded by Vicky Tsai 10 years ago after she sold her engagement ring to build the company, the brand was first known for its blotting papers. Gradually, it expanded its range of products using an ancient book of geisha beauty rituals as a guide.
Today, Tatcha’s products centre around gently caring for the skin, contrasting against products that damage layers of skin to prompt cell renewal. Formulation is often a lengthy process, but the products have become well-known for their unique ingredients that have helped the brand enjoy worldwide success.
According to Tsai, she and Unilever Prestige executive vice president, Vasiliki Petrou, met a few years ago when Tatcha was working on its first real capital raise. “She was so real in the meeting and we connected so deeply that I actually cried, and then when I left I told Vennette Ho from Financo, who is our banker and also a friend, I said, ‘I’m sure there’s nothing to do with them now, but I love Vasiliki and I hope I get to do something with her one day.'"
The two kept in contact, exchanging thoughts but not planning anything concrete. Eventually, they spent more time together and decided to go ahead with the acquisition.
Under Unilever, the brand will still use the Geisha beauty book as a roadmap, and it will continue to take its time formulating products. It will also open a second headquarters in Tokyo, and Petrou said she sees “lots of potential for international expansion of Tatcha."
