Unilever Plc. (UL - 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 - Free Report) and Colgate-Palmolive Co. (CL - 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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Unilever Plc. (UL - 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 - Free Report) and Colgate-Palmolive Co. (CL - 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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