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Owners of Schick and Wilkinson razor brands, Edgewell Personal Care, announced Thursday that they would buy shave start-up Harry's Inc. as part of a $ 1.37 billion transaction aimed at develop in the fast growing US market.
Harry's is the latest venture to have been purchased by a bigger rival and a dwarf as part of Unilever's purchase of the US-based Dollar Shave Club in 2016.
Unilever, Procter & Gamble and others have focused more on grooming men, encouraging them to spend more on deodorants, skin creams and hair products.
According to a report from ResearchAndMarkets.com, the global men's grooming industry is expected to reach $ 78.6 billion by 2023, up from $ 57.7 billion in 2017.
Harry's, based in New York, sells razors, shaving creams, lotions, soaps and other grooming products, embossed with the logo of his hairy elephant, as well as the range of razors and waxes Flamingo for women.
Harry's founders Andy Katz-Mayfield and Jeff Raider will join Edgewell's management team as co-chairs of the company's US operations.
Edgewell will pay 79% of the value of the cash transaction and the rest in shares, which will give Harry's shareholders an 11% interest in the amalgamated company at the end of the transaction, scheduled for the end of the first quarter of 2020.
Edgewell, which is exploring alternatives, including the sale of its women's care and infant care businesses, has not met analysts' expectations regarding second-year earnings. quarter due to the poor performance of these segments.
The New York Times had previously announced the deal on Thursday.
Goldman Sachs and Perella Weinberg Partners are Edgewell's financial advisors, while Wachtell, Lipton, Rosen & Katz have been the legal advisors to the company.
Centerview Partners was Harry & # 39; s financial advisor and Latham & Watkins and O & # 39; Melveny & Myers were the legal advisors.
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