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Harry’s, founded in 2013 by Andy Katz-Mayfield and Jeff Raider, designs and manufactures its own line of razors and replacement blades. The company expanded its consumer base to women via Flamingo, a new brand under Harry’s trademark that includes a line of body care and hair-removal products. Harry’s has reportedly raised around $375 million in VC funding from investors including Thrive Capital, BoxGroup and Tiger Global.
The New York company sells its products online and through a subscription service. Target announced it would carry a selection of Harry’s items online in 2016, and Walmart started selling the company’s products in 2,200 stores and online in May 2018. Harry’s operates its own razor factory in Germany and has employed more than 900 people across the US, the UK and Germany.
The men’s shaving industry was dominated by a household name for years: Gillette. That’s slowly changing as consumer giants with strong retailer relationships seek to buy subscription-based startups with direct-to-consumer business models. Procter & Gamble acquired Walker & Co., the owner of personal care brand Bevel in December, and Unilever (LON: ULVR) acquired Dollar Shave Club for $1 billion in 2016.
Harry’s Katz-Mayfield sees a difference between his company’s deal and the Unilever-Dollar Shave Club acquisition. “You don’t often see a challenger company combine with an incumbent in what is effectively a merger of equals. Edgewell is not a massive consumer packaged goods company, it is a midsize company. [And] Harry’s is not an average startup, it’s totally integrated and omni-channel,” he said in an interview with CNBC.
Edgewell says about 79% of the total value of the transaction will be paid in cash and 21% will be paid in Edgewell common stock.