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LONDON — Unilever plans to buy Dollar Shave Club, the U.S.-based razor blade subscription service that has jolted the men’s shaving category.
Financial terms of the agreement weren’t disclosed. However, published reports on Wednesday said Unilever is paying $1 billion for Dollar Shave Club, which was launched in March 2012 and has its headquarters in Venice, Calif.
For a low monthly fee, Dollar Shave Club delivers blade bundles right to consumers’ doorsteps.
Unilever said Wednesday that Dollar Shave Club has 3.2 million members and is projected to top $200 million in sales this year, up from $152 million in 2015.
“Dollar Shave Club is an innovative and disruptive male grooming brand with incredibly deep connections to its diverse and highly engaged consumers,” Kees Kruythoff, president of Unilever North America, said in a statement. “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.”
A hit with consumers fed up with the high price of razor cartridges, Dollar Shave Club charges a low monthly fee and delivers the blades right to their doorsteps. Consumers can choose from three blade bundles, priced at $1, $6 and $9 per month. Members pay $2 shipping for the $1 bundle, but shipping is free for the other two bundles.
The company — whose hip marketing also has helped grow its following — has since branched out into other men’s grooming offerings, including Dr. Carver’s shave care products, Wanderer men’s personal wash products, Big Cloud men’s skin care products, Boogies hair styling products and One Wipe Charlies daily wipes.
Market share gains by the Dollar Shave Club, as well as other online razor providers such as Harry’s and 800razors.com, led Procter & Gamble Co. to launch the Gillette Shave Club last June.
“Dollar Shave Club couldn’t be happier to have the world’s most innovative and progressive consumer product company in our corner,” stated Dollar Shave Club chief executive officer Michael Dubin, who founded the company with Mark Levine. “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.”
Plans call for Dubin to continue to serve as CEO of Dollar Shave Club. Unilever said the transaction is slated to close in the third quarter, pending regulatory approval.
