Coterie nearing $650M acquisition by Harry's parent Mammoth Brands
Aug 28, 2025
Key Points
- Mammoth Brands is acquiring Coterie, the D2C diaper subscription brand, for $650 million, valuing the profitable unit at 3.25x revenue despite $200M+ annual sales.
- Coterie's subscription model benefits from structural durability in the diaper market, where parents cycle through massive volumes over years and churn only at developmental milestones.
- Mammoth is executing a roll-up strategy of proven D2C brands with existing unit economics rather than building new products internally, assembling a consumer conglomerate to compete with traditional incumbents.
Summary
Mammoth Brands, the holding company formed from Harry's rebranding, is acquiring Coterie, the direct-to-consumer baby care brand, for approximately $650 million. Coterie generates over $200 million in annual revenue with $50 million in EBITDA, putting the deal at a 3.25x revenue multiple and 13x EBITDA multiple.
Coterie operates in a market with structural durability. Parents cycle through massive volumes of diapers over years, and churn only occurs when children reach developmental milestones. The brand has demonstrated strong retention, with demand outpacing supply even at mainstream retailers like Whole Foods.
Mammoth owns Harry's razors and Flamingo and is executing a roll-up strategy rather than launching new products internally. The company acquires proven direct-to-consumer brands with existing unit economics and distribution. Harry's originally solved a fundamental problem in consumer goods by acquiring manufacturing to break into markets controlled by oligopolists like Unilever and Gillette. If Mammoth continues acquiring breakout brands at scale, it could build a consumer conglomerate that competes with traditional holding companies through acquisition of brands that have already proven product-market fit, rather than through innovation.