Unilever has sold subscription razor brand Dollar Shave Club to the U.S.-based private equity firm Nexus Capital Management for an undisclosed amount. Unilever will retain a 35% minority stake in the company after the sale closes later this year.
The sale comes a little over seven years after Unilever bought the buzzy DTC brand for an estimated $1 billion. Since that time Dollar Shave Club has expanded both its product range and distribution, signing wholesale deals with the likes of Walmart, Target and others.
“We are thrilled to acquire Dollar Shave Club, based on its strong brand loyalty, pioneering DTC model and omnichannel presence,” said Michael Cohen, Partner at Nexus Capital Management in a statement. “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. We are excited to work with Dollar Shave Club employees to drive accelerated growth and welcome Unilever’s continued partnership.”
Following news of the sale, Unilever’s recently appointed CEO Hein Schumacher also said that there will be no major acquisitions in the foreseeable future as he focuses instead on business recovery, Cosmetics Business reported.
“This marks another step in our journey to transition our portfolio toward core strategic growth areas,” said Fabian Garcia, President of Unilever Personal Care in a statement. “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.”