Mammoth Brands Acquires Premium Baby Care Brand Coterie for Over $1 Billion

Consumer goods giant Mammoth Brands has officially announced its acquisition of premium baby care brand Coterie, a move set to significantly bolster its portfolio. The deal, which was reported by Reuters in August as being in talks, involves Coterie, a brand that notably counts high-profile investors such as models and entrepreneurs Karlie Kloss and Ashley Graham among its backers. This strategic acquisition is poised to make a substantial impact in the competitive baby care market.

Sources familiar with the matter indicate that the acquisition could value Coterie at over $1 billion. This valuation is contingent upon Coterie achieving specific financial targets, as the deal includes earnout clauses. Coterie had been actively seeking a buyer, with investment bank Raymond James facilitating the sale process before Mammoth Brands stepped in to finalize the transaction.

Coterie, founded in 2019 by Frank Yu, has quickly established itself as a leader in the premium baby care segment. The brand is celebrated for its commitment to quality, offering high-end, hypoallergenic, and cruelty-free diapers and skincare products. Its primary sales channel has been online, catering to a modern consumer base seeking superior options for their infants. This focus on quality and ethical production aligns well with contemporary consumer values.

Mammoth Brands, a privately held company, is known for its diverse and growing collection of consumer brands. Its existing portfolio includes successful ventures like men’s razor company Harry’s and women’s body care brand Flamingo. The integration of Coterie into this lineup represents a strategic expansion into the lucrative baby care sector, leveraging Mammoth's established infrastructure and market reach.

Andy Katz-Mayfield, co-founder and co-CEO of Mammoth Brands, expressed strong optimism about the acquisition. In a statement, he noted, "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." This statement underscores Mammoth Brands' ambition to not only scale Coterie but also to innovate within the baby care industry.

Financially, Coterie has demonstrated impressive growth, with its net revenue surpassing $200 million in the last twelve months—a nearly 60% increase year-over-year, according to the announcement. Mammoth Brands plans to capitalize on this momentum by scaling the business and expanding Coterie's offerings into adjacent product categories. The acquisition was financed through a combination of cash and stock, as confirmed by sources close to the deal.

Continuity in leadership is also a key aspect of this transaction, as Coterie's executive team is slated to remain with the company post-acquisition. The deal is projected to officially close by the end of 2025, allowing for a smooth transition and integration. Financial advisory services for Mammoth Brands were provided by Goldman Sachs, Wells Fargo, and JPMorgan, with legal counsel from Latham & Watkins. Cooley acted as legal counsel for Coterie throughout the acquisition process.