Dollar Shave Club made its name by being an outsider—by showcasing itself as being different from all the brands shavers have known for eons. DSC will likely stick with this formula since it has worked so well, but now the brand will join such names as Dove and AXE to become part of the Unilever portfolio for $1 billion. Not bad for a four-year-old company.
The two companies had been discussing a possible investment for months but that then evolved into an acquisition, founder and CEO Michael Dubin said, according to the Los Angeles Times. This will give Unilever a product to allow it to fully compete against Proctor & Gamble’s Gillette division and Edgewell’s Schick. DSC currently has 3.2 million subscribers and “had turnover of $152 million (last year) and is on track to exceed $200 million in turnover” this year, according to a press release. It will also allow DSC to grow beyond its current markets of the US, Canada and Australia.
DSC isn’t profitable just yet, but Dubin told attendees of a conference in May that it could be by year’s end, Recode reports. Last summer it was valued at $600 million so the billion-dollar price tag is a nice jump up. Gillette, which has started its own razor-subscription service, and DSC are still involved in a legal dispute. Gillette claims that DSC stole a patent or two for its products.
“Dollar Shave Club is an innovative and disruptive male grooming brand with incredibly deep connections to its diverse and highly engaged consumers,” said Kees Kruythoff, President of Unilever North America, in the press release. “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.”
And Dollar Shave isn’t just about shaving anymore. It also has personal wash products, hair styling, skin care and daily wipes. Unilever will smartly keep Dubin on as CEO of Dollar Shave Club.
The purchase is the largest of a Los Angeles tech company since Walt Disney Company shelled out $950 million for online video company Maker Studios two years ago, the Los Angeles Times reports.