On Tuesday, Unilever announced its plan of joining the razor business by purchasing Dollar Shave Club.
Dollar Shave Club is a razor start-up that sells disposable razors and grooming utensils for $1 a month. Although Dollar Shave Club has 3.2 million consumers, it doesn’t make any revenue.
No financial terms have been released but several media sources have pointed to the $1 billion deal. These same sources also indicate that Unilever addressed Dollar Shave Club with the offer.
The CEO of Dollar Shave Club, Michael Dubin, will continue to lead the company and the business will function independently. Dollar Shave Club only operates in three countries (the U.S, Canada, and Australia), but now, with Unilever’s support, Dollar Shave Club will be able to expand rapidly into other countries.
Dubin made a statement about the recent acquisition saying, “DSC couldn’t be happier to have the world’s most innovative and progressive consumer-product company in our corner,” and “We have long admired Unilever’s purpose-driven business leadership and its category expertise is unmatched. We are excited to be part of the family.”
In November, Dollar Shave Club earned over $160 million in venture capital funding at a $539 million assessment. Dollar Shave Club’s funding was sponsored by Venrock (for its Series A and B), Crossover Ventures (for the most recent Series A and B) and Forerunners Ventures.
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