Edgewell to buy men’s grooming brand Cremo for $235 million
Edgewell Personal Care owns men’s and women’s shave brands: Schick, Wilkinson Sword, Personna, Edge, and Skintimate; sun care brands: Banana Boat and Hawaiian Tropic; feminine care brands: Playtex, Carefree, Stayfree, and o.b.; and skin care brands: Bull Dog Skincare for Men, Jack Black, and Wet Ones.
And now the company plans to add a new men’s shave and skin brand to its portfolio. But the Cremo deal is about more than a brand and its portfolio of products; it’s also about a community of consumers.
“We are extremely impressed with the Cremo brand and its positioning and expect it to continue to resonate over the long term with consumers,” says Rod Little, President and CEO of Edgewell in today’s media release about the deal. “The organization's consumer-centric brand building capabilities will also be an important addition for Edgewell as we leverage the expertise of the Cremo team,” adds Little.
Edgewell Personal Care and men’s grooming brand Cremo to join forces in 2021
Edgewell and Cremo agreed to an all-cash deal in the amount of $235m. The transaction is anticipated to close in Q1 of 2021 but is, of course, subject to conditions.
And it’s worth noting that Edgewell hasn’t always had the best of luck when in comes to acquisition deals. Early this year the Federal Trade Commission (FTC) filed suit to block Edgewell’s acquisition of Harry’s Inc. because the commission believed that the “merger would allegedly eliminate competition that drove down razor prices [and] spurred innovation.” Edgewell withdrew the deal rather than invest the time and money required to litigate.
The same concern doesn’t exist for this deal. While Cremo does have a line of men’s shave products, the brand doesn’t (yet) sell razors.
And so, Little is “excited to announce this agreement to acquire Cremo,” pointing out that “the men's grooming category remains a strategic focus for Edgewell and this acquisition will help us accelerate growth and strengthen our position in the fastest growing categories in men's grooming. We are acquiring a profitable, growing business with an established presence that is well diversified across grooming categories, yet has significant opportunities for expansion.”
For Cremo, the deal presents a chance to leverage the reach and infrastructure of Edgewell: “This is a significant milestone for CREMO,” Matthew Biggins, President and CEO of Cremo, tells the press.
“Combining with Edgewell provides us the ability to bolster our strong store channel presence in the US while positioning us to capitalize on attractive channel and geographic expansion opportunities,” says Biggins. “We are excited to join the Edgewell global brand portfolio and look forward to leveraging our compelling brand and social media presence with the benefit of Edgewell's platform and demonstrated capabilities in the grooming category.”