Harry’s, after seeing its acquisition by Edgewell fall apart just before the pandemic, raised $155 million in new funding with plans to build a suite of consumer packaged goods companies. Is Harry’s Labs better positioned to take emerging DTC brands to the next level than big conglomerates?
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. Will the Edgewell/Harry’s deal create a stronger single company from the two?
When Harry’s and Target announced the deal that brought the shaving product’s brand into the retailer’s stores, it was positioned as a meeting of kindred spirits. It appears, nearly two years later, that Harry’s has met yet another friend. How will making Harry’s products available in Walmart affect Target’s business with the brand?
Harry’s achieved a 10 percent share of cartridge sales and 50 percent of razor handle sales in Target within the first four weeks of going on sale in Target stores. Do you think Harry’s success at Target will lead Dollar Shave Club to seek out a similar deal with a large retail chain?
If you can’t beat ‘em, sell their products. That appears to be at least partially the case with the news that Target is teaming up with Harry’s, the shaving products subscription service. What do you see as the value of the Target/Harry’s deals for each company?
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