Dive Brief:
- Unilever announced it will sell Dollar Shave Club to private equity firm Nexus Capital Management, according to a Thursday press release. Terms of the deal were undisclosed.
- Unilever will retain 35% minority shareholding control through the deal. The transaction is expected to be finalized this year and is subject to customary closing conditions.
- Nexus Capital Management was founded in 2013 and its investment portfolio includes Lamps Plus, Sugarbear, Toms and more.
Dive Insight:
Unilever’s latest move comes about seven years after it acquired the buzzy DTC startup.
“This marks another step in our journey to transition our portfolio towards core strategic growth areas,” Fabian Garcia, president of Unilever Personal Care, said 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.”
Unilever acquired the subscription-based shaving company in 2016 in what was reportedly a roughly $1 billion cash deal. At the time, Unilever’s North America president touted Dollar Shave Club’s leadership in the direct-to-consumer space.
While Dollar Shave Club started off through its subscription model, the brand now also sells its men’s grooming products at retailers such as Walmart, Target and more. The brand has expanded its offerings beyond razors since then, pushing into the broader men’s personal care category with products like deodorant.
Founder Michael Dubin stepped down from the CEO position at the brand in 2021, with Jason Goldberger taking over the top spot. However, Goldberger left the brand in September to become CEO of Lamps Plus. Unilever’s latest press release names Mary Jensen and Dale Brockmeyer as Dollar Shave Club’s interim co-CEOs. Brockmeyer’s LinkedIn includes the title of chief financial officer for the brand while Jensen’s displays the chief administrative and people officer position.
Unilever also announced the appointment of Fernando Fernandez as its new chief financial officer on Thursday, which is effective Jan. 1, 2024. The executive will join the board at that time. Meanwhile, the company announced additional leadership changes, including Priya Nair as its new president of beauty and wellbeing.
The consumer goods company reported its underlying sales growth in the third quarter was 5.2%, with its beauty and wellbeing segment delivering 7.4% in sales growth. Unilever unveiled a new action plan to “drive growth and unlock potential,” which includes optimizing its portfolio by making no major acquisitions, scaling multiyear innovation and more.
