Unilever Plc. (UL Quick QuoteUL - Free Report) said it has agreed to buy U.S.-based men’s grooming brand Dollar Shave Club for a reported $1 billion. The deal will expand the consumer goods group’s line of personal care products, and is Unilever’s latest effort to get a leg up on rivals like Proctor & Gamble (PG Quick QuotePG - Free Report) and Colgate-Palmolive Co. (CL Quick QuoteCL - Free Report) .

Dollar Shave Club’s turnover is expected to grow to over $200 million in 2016, up from $152 million last year, according to a statement from Unilever Tuesday. Dollar Shave Club sells razor blades and other grooming products direct to consumers via its website.

The company’s founder Michael Dubin will continue to be the chief executive even after the deal closes, which is expected to close in the third quarter of 2016. In a statement, Dubin said about the deal, “DSC couldn’t be happier to have the world’s most innovative and progressive consumer-product company in our corner”.

Proctor & Gamble-owned razor brand Gillette actually filed a patent infringement lawsuit against Dollar Shave Club over its blades, to which Dollar Shave Club filed a counter-suit earlier this year.

Unilever, which currently already owns personal care products including Axe, Dove and Pond’s, said in a statement Wednesday that Dollar Shave Club has “transformed the shaving category with its lifestyle brand” and has built a membership of 3.2 million since its establishment in 2012.

Bottom Line

As mentioned Unilever already owns several other successful brands, but Dollar Shave Club is a fast growing razor company that will not only expand the company’s product line, but will further its search for customer data. The deal will not close until later this year, but it will be interesting to see Dollar Shave Club’s growth, as well as how it helps drive Unilever’s business.

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