Edgewell Personal Care, the group that owns the Wilkinson Sword and Schick brands of razors, has agreed to buy shaving start up Harry’s in a $1.37bn deal.
The cash and share transaction will bring the six-year-old industry disrupter into the portfolio of one of the sector’s biggest players.
The companies said the deal would allow them to combine Harry’s experience in brand building and direct-to-consumer marketing with Edgewell’s intellectual property and global scale.
Andy Katz-Mayfield and Jeff Raider, who co-founded Harry’s in 2013, will join Edgewell’s executive team as co-presidents of its US operations.
“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 [consumer packaged goods] platform that creates brands people love across more categories,” said Mr Katz-Mayfield and Mr Raider.
“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.”
About 79 per cent of the deal will be paid in cash, with the remaining 21 per cent made up of Edgewell stock. Harry’s shareholders will own around 11 per cent of Edgewell.
Rod Little, Edgewell president and chief executive, said the deal would mark a “pivotal step forward” for the company in strengthening its competitive position, as it vies with rival Gillette, owned by Procter & Gamble, for market share.
The deal, which is expected to close in the first quarter of next year, was first reported on Wednesday by the New York Times.