Edgewell Personal Care, which owns brands like Schick (razors), Banana Boat (sunscreen) and Wet Ones (moist wipes), is adding Harry’s to that list in a $1.37 billion acquisition.
Founded in 2013, Harry’s is part of the current wave of brands using the internet to sell products directly to consumers. (In addition to razors, it also sells shower and face care products, and operates the Flamingo brand of women’s razors.)
It’s a trend that the established consumer giants have noticed, with Unilever acquiring Dollar Shave Club and Procter & Gamble acquiring Walker & Company.
With the acquisition, Harry’s co-founders and co-CEOs Andy Katz-Mayfield and Jeff Raider will become co-presidents of U.S. operations for Edgewell. (Speaking of direct-to-consumer brands: Raider is also co-founder of Warby Parker.)
“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 Edgewell’s president and CEO Rod Little in a statement. “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.”
Harry’s had previously raised around $375 million in funding, according to Crunchbase. Edgewell says the payment will break down to roughly 79% cash and 21% stock, giving Harry’s shareholders an 11% stake in Edgewell.
The deal is expected to close by the end of the first quarter of 2020.