Edgewell Personal Care Company will acquire men’s grooming brand CREMO in a $235 million cash deal.
The addition of CREMO’s “barber-grade” beard, hair, shave prep and skin care products will complement such other Edgewell brands as Jack Black and Bulldog, and aligns with the company’s stated growth strategy of acquiring selective, fast-growing and profitable brands. Earlier this year, it abandoned its efforts to acquire DTC darling Harry’s after the deal was blocked by the Federal Trade Commission.
Rod Little, Edgewell president and CEO, praised CREMO’s brand positioning, brand-building capabilities and long-term potential with consumers. Its products are currently sold through such retailers as Walmart, Target, Meijer, CVS Pharmacy, Walgreens, Kroger and Amazon, among others.
“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,” he noted. “We are acquiring a profitable, growing business with an established presence that is well diversified across grooming categories, yet has significant opportunities for expansion.”
"Combining with Edgewell provides us the ability to bolster our strong store channel presence in the U.S. while positioning us to capitalize on attractive channel and geographic expansion opportunities,” said Matthew Biggins, CREMO's president and CEO. “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."
The men’s grooming category, forecast by Allied Market Research to generate $166 billion in sales by 2022, has been in the spotlight for multiple consumer goods companies as of late.
“As weekly hair removal penetration continues to decline, there is a need to search beyond the traditional ‘clean shaver’ by addressing the more diverse men’s grooming needs,” Nicole Harris, Edgewell senior brand manager, said in a recent interview. “And with no sign that the facial hair trend is going away, manufacturers and retailers must think about new ways to cater to the needs of these men.”
In addition to Jack Black and Bulldog, Edgewell also counts such brands as Schick, Wilkinson Sword, Edge Skintimate, Playtex and Banana Boat under its umbrella. The company was spun off from Energizer Household Products and Personal Care in 2015.
The deal is set to close by the end of Q1 fiscal 2021.