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Unilever’s Acquisition Of Shea Moisture: Is A Game Changer

Community Conscious Buyouts & Black Women Entrepreneurs

Updated June 9, 2020 — As of December 2019, the new CEO of Sundial Brands is Cara Sabin, an African American woman. There are only 4 Black CEOs of Fortune 500 companies and the rest are men.

The Deal — The Blueprint

To companies who endeavor to do better or the socially conscious wealthy who want to help close the wealth gap, you should study Unilever’s acquisition of Sundial Brands which include: SheaMoisture, Nubian Heritage, nyakio™ and Madam C.J. Walker brands. The $240 million dollar deal crafted by Sundial’s co-founder and CEO, Richelieu Dennis included an initial $50 million dollar investment to the New Voices Fund for women of color entrepreneurs in 2017.

He could have quietly walked away with his fortune. Yet, he made the bold and awe-inspiring decision to reach back and help women of color build businesses and created the blueprint lucrative and community-conscious deals. This deal is a game-changer! It helps to level the playing field for minority and women-owned businesses. In essence, when Richelieu got paid from selling Sundial, “he paid if forward”. Today, the fund is worth $100 million and has already invested $30 million in 8 companies according to Shani Syphrett from Forbes Women.

Change Agent & Hero

This is the biggest and the most brilliant mergers of business and philanthropy the world has ever seen. According to Jay Coen Gilbert from Forbes, this deal is “unprecedented”. I think it should become a trend, and hopefully the standard and a best practice in mergers and acquisitions. I am not a business or finance expert — but my many years in education and organizational development give me some insight in how businesses and representation strengthen communities. Minority-owned businesses have a positive ripple effect on the owners, their families, their employees and the communities they serve. Not to mention, Black women entrepreneurs are the fastest-growing demographic — partnering with us is good business.

I first learned about Richelieu from the most unlikely source, Netflix. I was looking for some streaming inspiration and found, She Did That featuring several women entrepreneurs and the New Voices Fund. I would later read about this deal in Forbes, Fast Company and other business magazines. I admire Richelieu Dennis because he used his love and admiration for his grandmother, Sofi Tucker as inspiration to invest in women of color. Did you know women of color get less than 2% of traditional funding to start a business? Black women received less than 1% of the $85 billion dollars venture capitalists invested in 2017 according to a 2018 report from Project Diane and 2017 studies from Stanford, Deloitte, and the National Venture Capital Association. Project Diane also revealed that the average female entrepreneur of color received $42,000 in contrast to $1.3 million dollar investment men received for tech startups.

To add literal insult to injury, for some women of color the rejections and meager investments also come with blatant bias, disrespect and humiliation. (See New Voices success, Melissa Butler on Shark Tank). Richelieu is a maverick, hero for making women of color a priority in business development.

New Voices & Better Choices For Women of Color

The New Voices Fund is a beacon of hope for underestimated and severely underfunded women of color entrepreneurs. Having the financial backing and support of a global brand’s $100 million dollar fund, he created an opportunity for women of color to walk into board rooms with confidence, have a seat at the table and speak as entrepreneurial equals; worthy of respect, attention, and investment. The fund brings a level of prestige, and access that most entrepreneurs of color — especially women rarely see. As more businesses partner and merge, investing in the people and communities that inspire and support them should now be a goal.

Richelieu’s deal didn’t just level the playing field — he paved the way and rolled out the red carpet for women of color entrepreneurs. He raised the bar and set a new standard for acquisition deals and philanthropy. Now when big companies say they care about the wealth gap, it should be evident in the terms of their contracts. Real investment in diversity, inclusion and equitable business practices should go beyond PR moments, reactionary or obligatory hires and brand ambassadors. If women of color aren’t present and empowered to make decisions on your boards, leadership, and professional development teams (on every level) and aren’t key partners and vendors — you need to do better!

To Richelieu Dennis: Thank you for paying it forward and reaching back to help women like me. I look forward to learning more and supporting the businesses from the New Voices Fund.

Sources and Special Thanks

She Did That — Netflix

The Coolest Deal Term Ever: Sundial Pays It Forward, By Jay Coen Gilbert, Forbes.com

Black Female Founders Face Constant Rejection. They’re Thriving Anyway, Monique Greenwood, Entrepreneur.com

Meet The Brands Funded By Sundial And Unilever’s New Fund For Women Of Color Entrepreneurs, By Shani Syphrett, Forbes Women

Why Black Women Aren’t Getting Their Fair Share of Investment — and What We Can Do About It, By This Way Up, Inc.com

The State Of Black Women Getting Funding In 2018, By Bari A. Williams, Fast Company.com

Out of $85 Billion in VC Funding Last Year, Only 2.2 Percent Went to Female Founders. And Every Year, Women of Color Get Less Than 1 Percent of Total Funding, By Nina Zipkin, Entrepreneur.com