FTC Stops Harry’s $1.4 Billion Sale

The U.S. Federal Trade Commission (FTC) made a move yesterday to stop Edgewell Personal Care Co., one of the world's largest razor companies, from buying the startup Harry's in a $1.37 billion deal, which was supposed to be finalized this year.

The Commission believes that the deal, should it go ahead, would hurt competition. Harry’s products were offered at a cheaper price than those of Edgewell and P&G, and the Commission would like for that momentum to continue. 

Edgewell Personal Care Co. has the second-biggest market share in the United States, behind Gillette, when it comes to the razor-making industry. The company owns Schick, an old-school personal care and safety razors brand. Edgewell also owns other brands, such as Banana Boat, Hawaiian Tropic, Playtex, and Carefree brands.

Harry’s has made significant disruption in the razor industry in the past years with its innovative approach and direct-to-consumer marketing base. The New York-based company sells its products at Target and Walmart, and it has made its competitors change their approach in order to fend off their rapid ascendance. 

Harry’s has impressed with its direct approach, which included a subscription service where customers receive new razor blades, shaving creams, and other grooming products by mail.

According to Raider and Katz-Mayfield, Harry’s was supposed to stay true to its origins and continue with its competitive prices policy.

The FTC said the trial would begin in June while the official response from Edgewell is expected in “due course”.