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Edgewell's $1.37B Acquisition Of Harry's: What You Need To Know

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Edgewell's $1.37B Acquisition Of Harry's: What You Need To Know

Schick razor blade parent company Edgewell Personal Care Co (NYSE: EPC) said Thursday that it reached an agreement to acquire razor retailer Harry's for $1.37 billion.

What Happened

Edgewell will acquire Harry's in a cash-and-stock transaction to create a "next-generation consumer products platform," the companies said in a press release.

The acquisition will combine Harry's "disruptive force" across the shaving and adjacent grooming market with Edgewell's intellectual property, product technology, global scale and strong consumer brands, the companies said. 

Harry's co-founders and co-CEOs Andy Katz-Mayfield and Jeff Raider will join the executive team of Edgewell as co-presidents of U.S. operations.

Why It's Important

The companies said the transaction brings four benefits:

  • Giving Edgewell better exposure to a broader and more diverse set of consumers.
  • The creation of superior consumer connections through a fully integrated omnichannel experience.
  • The generation of $20 million of EBITDA in annual cost savings by 2023, $225-$240 million of gross cost savings and $20 million of EBITDA in annual revenue synergies by 2023.
  • The creation of $200-$300 million of annual organic free cash flow.

What's Next

Edgewell and Harry's respective board of directors both approved the transaction, which is expected to close in the first quarter of 2020. Edgewell said it will use a combination of cash on hand, net new debt and equity to finance the transaction.

Edgewell shares were falling by 9.62 percent to $35.98 at the time of publication Thursday. 

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