Thu, Jul 21, 2016 - Page 10 News List

Unilever to buy Dollar Shave Club for US$1 billion

Bloomberg

Unilever PLC agreed to buy Dollar Shave Club LLC in a deal said to be worth about US$1 billion, giving it a piece of the fast-growing business of selling grooming products online by subscription.

The Anglo-Dutch consumer products maker is expected to close the deal, subject to regulatory approval, in the third quarter, Unilever said in a statement, without disclosing terms.

The company is to pay cash, said people familiar with the terms, who asked not be identified as the valuation has not been disclosed.

Merlin Koene, a spokesman for Unilever, declined to comment.

Unilever, which generated about 17 percent of its revenue from North America last year, is to gain a subscription model Dollar Shave Club is using to take on brands such as Procter & Gamble Co’s Gillette and Edgewell Personal Care Co’s Schick in the estimated US$3 billion US men’s shaving products market.

The acquisition would be Unilever’s biggest since a more than US$3 billion deal to raise its majority holding in its Indian affiliate, Hindustan Unilever Ltd in 2013, according to data compiled by Bloomberg.

At the US$1 billion price, Unilever is paying five times Dollar Shave Club’s projected revenue this year.

Venice, California-based Dollar Shave Club has used advertising making fun of the high price and technical development of razor blades to boost sales, which the company forecasts at US$200 million this year, up from US$4 million in 2012.

Dollar Shave Club has 3.2 million members, according to the statement. The company sells razors for as little as US$1 per month, as well as shaving supplies.

It recently expanded its product line into hair care, offering pomade and hair cream that has made a comeback with young male consumers.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top