Harrys products
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Schick parent just wild about Harry’s in $1.37 billion deal

BY Dan Berthiaume

An online shaving upstart has been purchased by a razor giant in the latest deal to rock the fast-growing men’s grooming market.

Edgewell Personal Care Company, owner of the Schick and Wilkinson razor brands, is purchasing online shaving products retailer Harry’s Inc. in a mostly cash and stock transaction that values the brand at $1.37 billion. In addition to selling direct to consumers, Harry’s sells its razors and other products in Target stores under a 2016 partnership. Most recently, it began selling in Walmart stores.

The combined company will offer a portfolio of global brands in men’s and women’s shaving, as well as personal, sun, and skin care. Schick manufactures razors and personal grooming products that it sells online and via subscription, as well as through third-party retailer partners. Harry’s sells its own shaving and personal care products through its website and an online subscription service.

“The combination of Edgewell and Harry’s is a pivotal step forward in further transforming our organization and strengthening our competitive position and ability to drive sustained growth and value creation,” said Rod Little, Edgewell’s president and CEO. “Building on Edgewell’s and Harry’s complementary strengths, our combined company will have leading brands and omnichannel capabilities that are essential to meet the needs of the modern consumer and win in today’s market environment.”

The men’s grooming industry is expected to reach $78.6 billion globally by 2023, up from $57.7 billion in 2017, according to a ResearchAndMarkets.com report. The Harry’s acquisition is the second billion-dollar acquisition of a shaving startup. In 2016, Unilever’s purchased Dollar Shave Club for $1 billion.

“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 Andy Katz-Mayfield and Jeff Raider, co-Founders and co-CEOs of Harry’s. “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 omnichannel capabilities.”

The combined company will leverage Edgewell’s product technology to continue building on Harry’s proprietary shave and personal care products. The company also use Edgewell’s global scale and infrastructure to introduce Harry’s brands into new markets.

The companies expect to generate approximately $20 million in annual cost savings by 2023, driven primarily by production and supply chain optimization, purchasing and distribution efficiencies and SG&A rationalization. In addition, the companies expect to deliver approximately $20 million of EBITDA in annual revenue synergies by 2023.

The transaction has been approved by Edgewell’s and Harry’s boards of directors and is expected to close by the end of the first quarter of calendar 2020. The combined company will be led by Edgewell’s president and CEO Rod Little. In addition to Andy Katz-Mayfield and Jeff Raider leading the U.S. business, Colin Hutchison will continue to serve as Edgewell COO and will lead the combined company’s international division.

Additionally, Dan Sullivan will serve as CFO, Marisa Iasenza will serve as the chief legal officer and John Hill will serve as the chief human resources officer.

Upon completion of the transaction, the combined company’s board of directors will be expanded to add a new director selected by representatives of Harry’s.

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