By Abigail Summerville (Reuters) -Consumer goods company Mammoth Brands announced on Thursday that it will buy premium baby care brand Coterie, which counts models and entrepreneurs Karlie Kloss and
Mammoth Brands clinches $1 billion-plus deal for high-end diaper maker Coterie
By Abigail Summerville
(Reuters) -Consumer goods company Mammoth Brands announced on Thursday that it will buy premium baby care brand Coterie, which counts models and entrepreneurs Karlie Kloss and Ashley Graham as investors.
The deal could value Coterie at over $1 billion, subject to earnouts based on the company hitting certain financial targets, according to people familiar with the matter. Reuters reported in August that Mammoth was in talks to buy Coterie, which was up for sale with investment bank Raymond James.
Launched in 2019 by Frank Yu, Coterie is known for its high-quality, hypoallergenic and cruelty-free diapers, which are primarily sold online. Privately held Mammoth has a growing portfolio of brands including men’s razor company Harry’s and women’s body care brand Flamingo.
"By combining Coterie's beloved brand and products with Mammoth Brands' capabilities and infrastructure, we’re partnering to redefine the diaper category and accelerate Coterie’s growth to be the leading modern baby care brand," Andy Katz-Mayfield, co-founder and co-CEO of Mammoth Brands, said in a statement.
Coterie's net revenue surpassed $200 million in the last twelve months, up nearly 60% year-over-year, according to the announcement. Mammoth plans to scale the business and expand to adjacent product categories. It paid for the brand with a mix of cash and stock, sources said.
Coterie's executive team will remain with the company, and the transaction is expected to close by the end of 2025.
Goldman Sachs, Wells Fargo, and JPMorgan served as financial advisors to Mammoth Brands, with Latham & Watkins as legal counsel. Cooley acted as legal counsel to Coterie.
(Reporting by Abigail Summerville in New York; Editing by Nia Williams)
