Unilever has announced the sale of Dollar Shave Club to Nexus Capital Management LP, a US-based private equity firm. In addition to its razors, Dollar Shave Club also offers a range of male grooming products including its recent expansion into electric trimmers.
“This marks another step in our journey to transition our portfolio towards core strategic growth areas. Dollar Shave Club has a loyal membership and following, and I am confident the brand will thrive under its new ownership and continue to serve consumers across North America and beyond,” said Fabian Garcia, President of Unilever Personal Care.
Unilever acquired Dollar Shave Club in 2016. Founded in 2012 in Venice, California, the brand has specialised in online sales of shaving blades and men’s skin care products.
“We are thrilled to acquire Dollar Shave Club, based on its strong brand loyalty, pioneering DTC model, and omni-channel presence. We see growth potential and will invest in cutting-edge marketing, product quality and new innovations. Dollar Shave Club will also serve as a platform for additional brands with a similar DNA,” commented Michael Cohen, Partner at Nexus Capital Management.
Unilever will retain a minority shareholding of 35%. The transaction, financial terms of which have not been disclosed, is expected to close this year subject to customary closing conditions.
Sales drop in Q3
The announcement came after the group posted disappointing results on Q3-2023 with a turnover decreasing -3.8% to EUR 15.2 billion. Turnover for the Beauty and Wellbeing division decreased by 4.9% to EUR 3.1 billion, while Personal Care dropped by 2.2% to EUR 3.6 billion.
“Our performance in recent years has not matched our potential. The quality of our growth, productivity and returns have all under-delivered," said Unilever CEO, Hein Schumacher.
The group announced a strategic action plan to return to growth through stepping up productivity and simplicity, including selective portfolio optimisation and a pause on major or transformational acquisitions.