Harry’s, a US-based razor retailer backed by beauty product distributor Grace Beauty, yesterday agreed to an acquisition by consumer products supplier Edgewell Personal Care for $1.37bn.
Edgewell will pay approximately 79% of the amount in cash and the remainder in common stock. Harry’s shareholders will own approximately 11% in Edgewell following the transaction, which is expected to close by the first quarter of 2020.
Founded in 2013, Harry’s runs an online platform that sells men’s grooming products, including razors, shaving cream and post-shave balm as well as face wash and lotion, on top of accessories such as razor stands and wash bags.
Customers sign up for a subscription service and regularly receive blades and shaving gel, selecting a frequency of every two months to every five months.
Harry’s product range is expected to complement Edgewell’s existing portfolio, which includes razor brands such as Wilkinson Sword and Schick, alongside a range of sun, skin, feminine and pet care products.
Edgewell will introduce the Harry’s brand to more international markets while benefiting from its market position in North America. The corporate will also tap its direct-to-consumer capabilities, including its data analytics and digital marketing resources.
Andy Katz-Mayfield and Jeff Raider, Harry’s co-founders and co-chief executives, will join Edgewell as co-presidents of US operations.
Harry’s had raised approximately $400m in funding ahead of the acquisition, most recently attracting $112m in funding from investors including Singaporean government-owned investment firm Temasek in February 2018.
Private equity firm Alliance Consumer Growth also participated in the 2018 round, reportedly alongside Tiger Global Management and Wellington Management. Wellington had previously led a $75.6m series C round for the company in 2015 that featured Tiger Global.
Thrive Capital, Highland Capital and SV Angel are among Harry’s earlier backers. Grace Beauty Capital, the corporate venturing arm of Grace Beauty, lists Harry’s in its portfolio, though it remains unclear when the unit invested.
Image courtesy of Harry’s, Inc.
