Unilever announced Sale of Dollar Shave Club to Nexus Capital Management LPA US-based private equity firm. In addition to shavers, Dollar Shave Club also offers a variety of men’s grooming products, including a recent expansion into electric trimmers.
“This marks another step in our journey to transform our portfolio into key strategic growth areas. Dollar Shave Club has a loyal membership and following, and I am confident the brand will thrive under new ownership and continue to serve consumers across North America and beyond.” aforementioned Fabian Garcia, President of Unilever Personal Care.
Unilever acquired Dollar Shave Club in 2016. Founded in 2012 in Venice, California, the brand specializes in online sales of razors and men’s skin care products.
“We are delighted to acquire Dollar Shave Club due to its strong brand loyalty, pioneering DTC model and omnichannel presence. We see growth potential and will invest in advanced marketing, product quality and new innovations. Dollar Shave Club will also serve as a platform for other brands with similar DNA.” he commented Michael Cohen, Partner at Nexus Capital Management.
Unilever will retain a 35% minority stake. The transaction, financial terms of which were not disclosed, is expected to be completed this year, subject to customary closing conditions.
Sales fell in the third quarter
The announcement comes after the group announced disappointing results in the third quarter of 2023, with turnover falling by -3.8% to €15.2 billion. The Beauty & Wellbeing division’s turnover decreased by 4.9% to €3.1 billion, while Personal Care decreased by 2.2% to €3.6 billion.
“Our performance in recent years does not match our potential. The quality of our growth, productivity and returns has fallen short.” aforementioned Unilever CEO Hein Schumacher.
The group announced a strategic action plan to return to growth by increasing productivity and simplicity, including selective portfolio optimization and a pause on large or transformational acquisitions.
