Owner of Schick Razors Buys Harry’s in $1.4 Billion Deal
If you can't beat 'em, acquire 'em.
Edgewell Personal Care, the parent company of Schick, is buying upstart razor maker Harry’s in a deal worth nearly $1.4 billion.
About 79 percent of the deal is cash and the rest is Edgewell stock. Once the sale is complete early next year, shareholders of Harry’s will own about 11 percent of Edgewell. Under the terms of the deal, Harry’s founders Andy Katz-Mayfield and Jeff Raider will stay on to run the combined companies’ business in the U.S.
In addition to owning Schick and now Harry’s, Edgewell also owns Wilkinson Sword, a European brand that has been making razors since 1898. With the purchase, Edgewell hopes it will be able to compete with Gillette — which controls more than half of the U.S. market for razorblades — as well as online retailers like Dollar Shave Club.
“Building on Edgewell’s and Harry’s complementary strengths, our combined company will have leading brands and omni-channel capabilities that are essential to meet the needs of the modern consumer and win in today’s market environment,” said Edgewell president and CEO Rod Little.
Following news of the purchase, Edgewell’s shares slid by 15 percent. Overall, shares of Edgewell have fallen 22 percent in the last 12 months.
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