Disruptive shaving startup Harry’s just became part of the very industry it was disrupting.
Harry’s Inc has been purchased by Edgewell Personal Care Company, the owner of Schick, in a cash-and-stock transaction that values Harry’s at $1.37 billion. Harry’s cofounders and co-CEOs, Andy Katz-Mayfield and Jeff Raider, will join Edgewell’s executive team and serve as co-presidents of U.S. operations.
Harry’s launched in 2013 as a digitally based, direct-to-consumer brand. However, by 2016, it had expanded its reach and branched out into brick-and-mortar operations, appearing on shelves at Walmart and Target, and giving traditional razor companies a run for their money.
As the company flourished, Edgewell came calling. In typical business-speak, the press release praises the two companies’ “complementary capabilities to create a next-generation consumer products platform with an expansive runway for accelerated topline growth and enhanced value creation.” In English, that means Harry’s succeeded in shaking things up in the shaving and grooming world, and now Edgewell wants in.
The combined company will own not only Harry’s and Flamingo, its women-oriented line, but also shaving giant Schick and razor brand Wilkinson, as well as Hawaiian Tropic, putting them in a very good position to dominate the market.
The acquisition is the latest example of a traditional company buying a startup rival, whether it’s Unilever buying Dollar Shave Club for $1 billion, or Walmart buying online clothing companies Bonobos and ModCloth.