Dr. Scholl’s to Become Wellness Company
Yellow Wood Partners has acquired foot-care brand Dr. Scholl's with plans to turn it into a broader wellness company.
The private equity firm has closed on the $585 million acquisition. Dr. Scholl's was carved out of Bayer, and did $234 million in sales for 2018.
Yellow Wood is planning to build "the Scholl's Wellness Company," which will operate as a stand-alone wellness business. Craig Stevenson, who was previously with Clorox, has been appointed chief executive officer.
"The Dr. Scholl's brand fits extremely well with the Yellow Wood consumer-focused business model where we bring our operational and financial resources to build a limited number of platform companies," said Tad Yanagi, partner at Yellow Wood. "There is a significant opportunity to build the Scholl's Wellness Company into a broader wellness business through both organic growth and additional acquisitions."
Yellow Wood has a history of buy-and-build dealmaking. The firm backed PDC, the mass-market platform that owned brands including Dr Teal's, before selling it to CVC Partners. Yellow Wood backs Freeman Beauty, another mass-market platform business that owns Freeman masks and Paris Presents.
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