Shaving startup Harry’s to be acquired by Edgewell Personal Care, the owner of Schick, for $1.37 billion

Another day, another billion dollar acquisition. This time it’s payday for investors of Harry’s, a consumer product brands startup founded nearly nine years ago by Andy Katz-Mayfield and Jeff Raider. In statement today, Edgewell Personal Care Company, the owner of Schick, announced its acquiring Harry’s, for $1.37 billion in stock and cash  transaction.

As part of the acquisition, Andy Katz-Mayfield and Jeff Raider, Harry’s Co-Founders and Co-CEOs, have agreed to join the Executive Team of Edgewell at closing, to serve as Co-Presidents of U.S. operations. Founded in 2013, the New York City-based Harry’s is a men’s care brand that offers exceptional products at a real value. As the only vertically integrated shaving company in the world, Harry’s owns and operates its own razor factory in Eisfeld, Germany, and sells products direct-to-consumers across the U.S., U.K., and Canada at Harrys.com, as well as in Target and Walmart stores across the U.S.

The combination of Edgewell and Harry’s brings together complementary capabilities to create a next-generation consumer products platform with an expansive runway for accelerated topline growth and enhanced value creation.

“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 Rod Little, Edgewell’s President and Chief Executive Officer. “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. We welcome Harry’s entrepreneurial employees and look forward to working closely with Andy and Jeff, whose ingenuity and demonstrated success will enable us to take our U.S. business to the next level. We are excited about our future and the opportunities we have to deliver superior long-term shareholder returns as a next-generation CPG platform.”

Andy Katz-Mayfield and Jeff Raider, Co-Founders and Co-CEOs of Harry’s, said “When we launched Harry’s six years ago our vision was to create a grooming brand that better met our needs as consumers, and over time, a CPG platform that creates brands people love across more categories. Together with Edgewell, we see a significant opportunity to continue delivering on that vision, leveraging Edgewell’s advanced technology and global footprint alongside our customer-first approach, brand building expertise and omni-channel capabilities. We’re incredibly proud of the brands we’ve created and the team we’ve built, and have tremendous respect for Edgewell and its established brand portfolio. We look forward to what we can accomplish together.”

Under the terms of the agreement, approximately 79% of the total value of the transaction will be paid in cash and 21% will be paid in Edgewell common stock. Upon completion of the transaction, Harry’s shareholders will own approximately 11% of Edgewell.

The transaction has been approved by Edgewell’s and Harry’s Boards of Directors and is expected to close by the end of the first quarter of calendar 2020, subject to the satisfaction of customary closing conditions and receipt of regulatory clearance.