Unilever (LON:ULVR) has announced the sale of its men's grooming subsidiary, Dollar Shave Club, to Nexus Capital Management LP. The consumer goods giant will retain a 35% stake in the company as part of its strategic shift towards core growth areas. This decision was confirmed today by Fabian Garcia, president of Unilever Personal Care.
Dollar Shave Club, known for its strong brand loyalty and pioneering direct-to-consumer model, has made significant strides in North America and has a presence in the UK. Nexus Capital plans to further enhance the brand's reach by implementing cutting-edge marketing strategies, improving product quality, and introducing similar DNA brands.
Interim co-CEOs Mary Jensen and Dale Brockmeyer expressed optimism about the new partnership with Nexus Capital. They anticipate an inspiring environment for employees under the new ownership structure.
The deal, whose financial terms remain undisclosed, is expected to close within this year. In a related move, Unilever has decided to freeze CEO Hein Schumacher's pay for two years.
Unilever initially acquired Dollar Shave Club for $1 billion but was only able to expand its presence into the UK market. Despite retaining a 35% stake, Unilever's efforts to internationalize Dollar Shave Club ultimately fell short. The brand initially gained recognition through a viral commercial that has accumulated 28 million views, underscoring its innovative approach to selling razor blades online.
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