Edgewell Personal Care Co., manufacturer of Schick and Wilkinson Sword razors, is acquiring shaving rival Harry’s for $1.37 billion in stock and cash, the companies announced Thursday.
While Edgewell’s headquarters is on Research Drive in Shelton, it has operations on Leighton Road in Milford and around the globe.
Rod Little, Edgewell’s president and chief executive officer, called the combination of Edgewell and Harry’s “a pivotal step” in strengthening his company’s competitive position. Little will lead the combined company.
“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,” Little said in an announcement.
The transaction is expected to close in the first quarter of 2020.
Harry’s started about six years ago and uses the slogan, “You deserve a great shave at a fair price.” Its co-founders and co-CEOs, Andy Katz-Mayfield and Jeff Raider, say they launched the company because they didn’t want to overpay for razors. The New York City-based company quickly gained traction in the shaving industry through online and retail sales using a subscription model for replacement blade cartridges.
In the announcement, the companies indicated they expect Harry’s brand-building talent will be a good fit with Edgewell’s technology, global presence and strong consumer brands. They expect mutual benefits, such as products getting into new markets and increased growth in online direct to consumer sales.
In addition to razors, Edgewell makes such well-known products as Edge and Skintimate shaving products; Playtex, Stayfree, Carefree and o.b. feminine products; Banana Boat and Hawaiian Tropic sun care; Playtex infant feeding products; Wet Ones moist wipes, and Diaper Genies.
Katz-Mayfield and Raider will join Edgewell’s team and serve as co-presidents of U.S. operations, according to the announcement. The pair launched Harry’s with a vision of “creating a grooming brand that better met our needs as consumers.” By combining with Edgewell, they plan to continue this vision. “We look forward to what we can accomplish together,” they said.
Also Thursday, Edgewell announced its financial results for the quarter ending March 31, 2019. According to the company, net sales were at $546.7 million for the quarter, a decrease of about 10 percent when compared to the same period last year.
According to Little, the company is making aggressive changes to realize cost savings and improve sales, and it expects improved performance in the coming months.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com
