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Edgewell to acquire Harry’s, announcement due today: executives
Posted on Thursday, 09 May 2019 10:08
Edgewell Personal Care is expected to announce today the USD 1.37 billion acquisition of Harry’s, the shaving startup launched almost a decade ago that has shaken up the sleepy razor market, according to the New York Times (NYT). In an interview with the newspaper, executives from both companies said serious discussions began shortly after the listed Connecticut-based corporation hired Rod Little as its chief executive. Little saw “an interesting product portfolio” comprising the brands Wilkinson and Schick but a lack of ways to “communicate with the consumer”. Enter razor market disruptor Harry’s, which sells shaving products, face lotions and washes and accessories direct to consumers via the Internet and offers a subscription plan for the home delivery of a certain number of blades each month. The startup, founded by Andy Katz-Mayfield and Jeff Raider who were frustrated by the cost of traditional disposable razors, has even started to expand into related fields by taking a stake in men’s hair-loss company Hims. Harry’s did weigh up alternative options – including an initial public offering - for growth, the executives told NYT. The decision to sell to an established banner to create a larger sector player with a wider global reach and technology-driven marketing efforts makes more sense. Harry’s co-founder Andy Katz-Mayfield told the newspaper: “This [the deal] got us where we wanted to go more quickly than some alternative route.” The cash-and-scrip agreement was approved by the boards of both companies yesterday and will result in the existing investors of Harry’s owning 11.0 per cent of the combined entity. Katz-Mayfield and co-founder Jeff Raider are expected to become co-presidents of Edgewell’s US operations, according to the newspaper. While the combined company will still lag someway behind market-leading brand Gillette, owned by Procter & Gamble, it will have more firepower for growth, the NYT noted. © Zephus Ltd