Consumer goods manufacturer Unilever agreed yesterday to buy US-based grooming product seller Dollar Shave Club (DSC), in a deal reported by Fortune to be sized at $1bn in cash, giving an exit to mass media group Comcast.
Founded in 2012, DSC operates an online platform that sells men’s grooming products through a subscription model. It began with razors before expanding to include skincare products such as cleansers, wipes and creams, as well as haircare products.
The company recorded $152m in turnover in 2015 and is on track to reach $200m this year, according to a statement announcing the acquisition.
Founder Michael Dubin will remain chief executive of DSC, which has 3.2 million members and will keep operating independently, once the acquisition has closed.
DSC has raised approximately $164m in venture funding, most recently closing a series D round featuring Comcast’s corporate venturing unit, Comcast Ventures, at $90.7m in November 2015, according to a regulatory filing.
The series D round, which valued DSC at $615m, was led by Technology Crossover Ventures and included Venrock, Forerunner Ventures and Dragoneer Investment Group.
Comcast Ventures had already taken part in the company’s $16.2m series B round the year before, investing together with Venrock, New World Ventures and Battery Ventures. Other DSC backers include Kleiner Perkins Caufield & Byers, Andreessen Horowitz, Shasta Ventures and Felicis Ventures.
Kees Kruythoff, President of Unilever North America, said: “Dollar Shave Club is an innovative and disruptive male grooming brand with incredibly deep connections to its diverse and highly engaged consumers.
“In addition to its unique consumer and data insights, Dollar Shave Club is the category leader in its direct-to-consumer space. We plan to leverage the global strength of Unilever to support Dollar Shave Club in achieving its full potential in terms of offering and reach.”
– Image courtesy of Dollar Shave Club