Dive Brief:
- Grove Collaborative announced Tuesday that it has acquired the assets of eco-friendly cleaning products company Grab Green, per a company news release.
- The deal cements a partnership between the two companies that began in 2019 when Grab Green became a third-party vendor for Grove.
- Grab Green co-founders Patricia Spencer and Michael Edell are joining Grove in advisory roles and will help with integration and product development, per the release.
Dive Insight:
The acquisition of Grab Green marks a continuation of Grove’s strategy to broaden its product mix of sustainable, complementary brands. Grove sells its own products as well as a curated selection of over 280 brands of household cleaning, personal care, health and wellness, laundry, clean beauty, baby and pet care products.
“Grab Green has been a trailblazer in creating safe, sustainable, and effective cleaning products that align perfectly with Grove’s mission of reducing the environmental impact of everyday household essentials,” Jeff Yurcisin, CEO of Grove Collaborative, said in a statement. “This acquisition represents an exciting opportunity to scale our collective impact, bringing even more innovative and eco-friendly solutions to consumers while continuing to raise the bar for sustainability in our industry.”
Grab Green has become known for its sustainable, nontoxic cleaning products including laundry and dishwasher detergent pods. Grab Green products complement Grove’s focus on eliminating single-use plastics in the environment.
“This collaboration marks a new chapter for Grab Green, one where we can reach more homes and have an even greater environmental impact,” Edell said in a statement. “With Grove’s extensive platform and shared values, we are confident that this partnership will amplify our ability to innovate and lead the charge in sustainable home care.”
The deal, however, comes as Grove Collaborative faces financial challenges. Yurcisin assumed the CEO role in 2023, inheriting a brand with debt and declining revenues. Grove was able to pay down $42 million of term debt by August last year, and a capital investment from Volition Capital from September is being used to further reduce the company’s outstanding term debt.
The company has embarked on a number of initiatives to cut costs, including switching over to Shopify and exiting its wholesale brick-and-mortar partnerships. In its most recent quarter, Grove reported net revenue fell about 22% year over year, but net loss narrowed significantly to $1.3 million, from about $10 million in the year-ago period.