At the $1 billion price, Unilever is paying five times Dollar Shave Club's projected revenue this year.
Not in terms of the technology, but in how it is sold, getting rid of what Michael Dubin, founder and CEO of Dollar Shave Club, has called "superfluous technological advancements" and by appealing to a younger audience through humerous videos.
Unilever has agreed to a deal that will see it acquire buy razor-maker Dollar Shave Club, helping it significantly expand its men's grooming products portfolio.
Mr. Dubin, 37 years old, will remain CEO of Dollar Shave Club.
Unilever owns personal care brands such as Axe and Dove, in addition to a bevy of household names across other categories.
Launched in March 2012, Dollar Shave Club emerged onto the scene with a simple proposition and a very viral video on YouTube.
The transaction is expected to close in the third quarter and is subject to regulatory approval, Unilever said in a statement. Eventually the company branched out into other areas relating to the bathroom including body wash, skin protection, lip balm, shave butter, and durable butt wipes.
Dollar Shave Club is an innovative and disruptive male grooming brand with incredibly deep connections to its diverse and highly engaged consumers.
Read a Bloomberg Intelligence report on the Personal Care Industry here.
Unilever is making an investment in the on-demand space, announcing today that it has purchased Dollar Shave Club for reportedly $1 billion. "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". "It was probably on the radar but we weren't necessarily having the right conversation around what might disrupt us", said a person familiar with the company's thinking. Commenting on the deal, he noted: "It just felt right to me and I really trust the people I met at the Unilever".