Private equity firm Nexus Capital Management will acquire a 65% stake in Dollar Shave Club, the brand Unilever paid $1 billion in cash to acquire in 2016.
WHO: Dollar Shave Club was founded in 2011 by Michael Dubin and Mark Levine to undercut the prices of razors offered by brands like Gillette and Schick with a DTC offering of affordable razors, delivered straight to the consumer’s door. Dollar Shave Club has evolved into a multinational omnichannel lifestyle brand with retail presence across the US, with a goal to offer simple shaving and grooming solutions at a great price.
The Dutch conglomerate Unilever was incorporated on June 21, 1894. The company’s segments include personal care, foods, home care, and refreshments. The company operates in more than 100 countries, selling its products in more than 190 countries. Unilever owns more than 400 brands.
Nexus is an alternative asset investment management company based in Los Angeles, California, founded in 2013. Nexus employs a flexible investment mandate focusing on long-term value creation by partnering with leading management teams and businesses.
WHY: Unilever struggled to grow sales at Dollar Shave Club. Former CEO Alan Jope said during an earnings call in 2022, "Dollar Shave Club did not deliver as expected, and the economics of the DTC model changed."
IN THEIR OWN WORDS: Fabian Garcia, President of Unilever Personal Care, said, “This marks another step in our journey to transition our portfolio towards core strategic growth areas. 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.”
Michael Cohen, Partner at Nexus Capital Management, said, “We are thrilled to acquire Dollar Shave Club, based on its strong brand loyalty, pioneering DTC model, and omni-channel presence. We see growth potential and will invest in cutting-edge marketing, product quality and new innovations. Dollar Shave Club will also serve as a platform for additional brands with a similar DNA. We are excited to work with Dollar Shave Club employees to drive accelerated growth and welcome Unilever's continued partnership.”
Dollar Shave Club interim co-CEOs Mary Jensen and Dale Brockmeyer said, "We are grateful to Unilever for their support and are looking forward to a strong partnership with Nexus Capital Management. Their commitment to investing in our challenger brand will unlock future growth and create an inspiring environment for our employees."
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