Unilever buys Dollar Shave Club
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Consumer products giant Unilever is to buy California-based Dollar Shave Club, an online razor delivery subscription business that has 3.2 million members.
Terms of the transaction were not officially disclosed, but sources say the FMCG giant is paying the razor business US$1 billion in cash.
“Dollar Shave Club is an innovative and disruptive male grooming brand with incredibly deep connections to its diverse and highly engaged consumers,” said Kees Kruythoff, president of Unilever North America.
“In addition to its unique consumer and data insights, Dollar Shave Club is the category leader in its direct-to-consumer space. We plan to leverage the global strength of Unilever to support Dollar Shave Club in achieving its full potential in terms of offering and reach.”
Michael Dubin, founder or Dollar Shave Club, will continue to serve as its CEO.
“We have long admired Unilever’s purpose-driven business leadership and its category expertise is unmatched,” said Dubin. “We are excited to be part of the family.”
Subject to regulatory approval, the transaction is expected to close during the third quarter.
Questions & Answers
Q.What kind of business is Dollar Shave Club?
What kind of business is Dollar Shave Club?
It is an online razor delivery subscription business based in California. The company currently has 3.2 million members subscribed to its service, primarily focused on male grooming.
Q.How much is Unilever paying for Dollar Shave Club?
How much is Unilever paying for Dollar Shave Club?
The official terms of the transaction were not disclosed by the companies. However, sources familiar with the deal indicate that Unilever is paying US$1 billion in cash for the business.
Q.What will happen to Michael Dubin, the founder of Dollar Shave Club?
What will happen to Michael Dubin, the founder of Dollar Shave Club?
Michael Dubin, who founded Dollar Shave Club, will remain with the company in his current role. He is set to continue serving as its Chief Executive Officer after the acquisition.
Q.When is the acquisition expected to be finalised?
When is the acquisition expected to be finalised?
The transaction is expected to close during the third quarter of the year. This completion is contingent upon receiving the necessary regulatory approval for the acquisition to proceed.
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