DISCUSSION
Will Schick parent’s acquisition of Harry’s create a ‘next-generation consumer products platform’?
Written by George Anderson
Edgewell, the parent company of Schick and Wilkinson razors, Edge shaving gel, Playtex and other personal care brands, announced today that it has entered into a definitive agreement to merge with Harry’s in a cash and stock deal that values Harry’s at $1.37 billion.
The combination of the two companies, according to a press release announcing the deal, will “create a next-generation consumer products platform with an expansive runway for accelerated topline growth and enhanced value creation.” Translation: The two companies will work together to come up with new products that create mass appeal and drive the price of Edgewell’s shares up well beyond yesterday’s close of $39.82.
Harry’s — along with Dollar Shave Club, acquired by Unilever for $1 billion in 2016 — has been among a number of consumer-direct brands shaking up the men’s grooming and shaving categories in recent years.
Edgewell’s shaving brands combined with Harry’s represent just over 16 percent of sales in the U.S. shaving market, according to Euromonitor data cited in a New York Times report. Procter & Gamble, with its Gillette brand, represents 47.3 percent of category sales.
While known primarily as a consumer-direct brand, Harry’s is not a stranger to retail. The company began selling its products in Target’s store and on its website in 2016. The brand got picked up by Walmart last year.
Andy Katz-Mayfield and Jeff Raider, Harry’s co-founders, will become co-presidents of U.S. operations for Edgewell after the deal’s close.
“When we launched Harry's six years ago our vision was to create a grooming brand that better met our needs as consumers, and over time, a CPG platform that creates brands people love across more categories,” said Messrs. Katz-Mayfield and Raider in a joint statement. “Together with Edgewell, we see a significant opportunity to continue delivering on that vision, leveraging Edgewell's advanced technology and global footprint alongside our customer-first approach, brand building expertise and omni-channel capabilities.”
Harry’s owners will control 11 percent of Edgewell’s shares after the deal is completed.
- Edgewell Personal CareAnnounces Second QuarterFiscal 2019 Results – Edgewell Personal Care Company
- Edgewell Personal Care to Combine with Harry's, Inc. to Create a Next-Generation Consumer Products Platform – Edgewell Personal Care Company/Harry’s Inc.
- Shaving Start-Up Harry’s Will Be Sold to Owner of Schick for $1.37 Billion – The New York Times
- What does Unilever’s acquisition of Dollar Shave Club mean? – RetailWire
- Will Target and Harry’s make for a perfect retail partnership? – RetailWire
- Soon available at Walmart, Harry’s is giving Gillette a run for its money – Fast Company
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