May 9, 2019 / 10:10 AM / a year ago

UPDATE 2-Schick razor maker Edgewell to buy shaving startup Harry's in $1.37 bln deal

(Adds details on the deal, advisers, industry background)

May 9 (Reuters) - Schick and Wilkinson razor brands owner Edgewell Personal Care Co said on Thursday it would buy shaving startup Harry's Inc in a $1.37 billion cash-and-stock deal, to expand in a fast-growing U.S. grooming market.

Harry's is the latest shaving startup to be bought by a bigger rival and dwarfs Unilever Plc's purchase of the U.S.-based Dollar Shave Club in 2016.

Unilever, Procter & Gamble Co and others have put more focus on men's grooming, trying to coax them into spending more on deodorants, skin creams and hair products.

The global men's grooming industry is expected to hit $78.6 billion by 2023 from $57.7 billion in 2017, according to a report.

New York-based Harry's sells razors, shaving creams, lotions, soaps and other grooming products, embossed with its quirky hairy elephant logo, as well as Flamingo line of women's razors and waxes.

Harry's founders Andy Katz-Mayfield and Jeff Raider will join the executive team of Edgewell as co-presidents of the company's U.S. operations.

Edgewell will pay 79 percent of the deal value in cash and the rest in stock, giving Harry's shareholders an 11 percent stake in the combined company upon completion of the deal, expected by the end of first quarter of 2020.

Edgewell, which is in the process of exploring alternatives including the sale of its feminine care and infant care businesses, missed analysts expectations for second-quarter revenue due to the weak performance in the segments.

The New York Times had earlier reported about the deal on Thursday.

Goldman Sachs & Co LLC and Perella Weinberg Partners LP are financial advisers to Edgewell, while Wachtell, Lipton, Rosen & Katz served as the company's legal adviser.

Centerview Partners LLC was the financial adviser to Harry's and Latham & Watkins LLP and O'Melveny & Myers LLP served as its legal advisers.

Reporting by Syed Saif Hussain Naqvi and Soundarya J in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila

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