Unilever Snaps Up Dollar Shave Phenom

(RTTNews) - Consumer goods giant Unilever Plc. (UN, ULVR.L, UL) has agreed to acquire U.S.-based men's grooming business Dollar Shave Club. Financial terms of the deal were not disclosed, but media reports indicated that Unilever is paying $1 billion in cash.

The transaction, which enables Unilever to foray into the shaving market dominated by rival Procter & Gamble's (PG) Gillette, is expected to close during the third quarter. Unilever already owns personal care products like Dove soaps and Axe body sprays.

Kees Kruythoff, president of Unilever North America said, "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 and CEO of Dollar Shave Club, will continue to serve as its CEO following its acquisition by Unilever.

Founded in 2012 and headquartered in Venice, California, Dollar Shave Club or DSC has grown into a full male grooming business and has 3.2 million members. In 2015, DSC had turnover of $152 million and is on track to exceed turnover of $200 million in 2016.

Dollar Shave Club's product range now extends beyond inexpensive shaving razors to include Wanderer men's personal wash products, Big Cloud men's skin care products, Boogies hair styling products, and One Wipe Charlies daily wipes.

Dollar Shave Clue delivers razors and other personal male grooming products straight to consumers through its mail-order service, positioning itself as a cost-effective and convenient alternative to retail chains.

In March 2012, the company uploaded a hilarious YouTube video featuring its founder Dubin that poked fun at the pain and expense of shaving. The video, which went viral, prompted 12,000 orders in a span of two days after it was released and has received more than 22 million views up to March 2016.

Dollar Shave Club has wrested market share from market leader Gillette, which last year filed a patent-infringement lawsuit that alleged Dollar Shave Club used its patented formulas to manufacture copycat razor blades.