Edgewell Personal Care Company announced that it has entered into a definitive purchase agreement to acquire CREMO, a premier men’s grooming company in the U.S., in an all-cash transaction at a purchase price of $235 million.
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CREMO is one of the strongest and fastest growing masstige brands in men’s grooming, offering a complete line of beard, hair, shave prep and skin care products. The company will complement Edgewell’s portfolio of insurgent brands such as Jack Black and Bulldog, by uniquely serving specific consumer profiles, and therefore increasing Edgewell’s penetration in the most attractive growth categories within men’s grooming. The transaction is aligned with Edgewell’s core growth strategy of acquiring selective, fast-growing and profitable brands that increase its presence in attractive segments.
Rod Little, Edgewell’s President and Chief Executive Officer stated, “We are excited to announce this agreement to acquire CREMO. 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. We are acquiring a profitable, growing business with an established presence that is well diversified across grooming categories, yet has significant opportunities for expansion. We are extremely impressed with the CREMO brand and its positioning and expect it to continue to resonate over the long term with consumers. The organization’s consumer-centric brand building capabilities will also be an important addition for Edgewell as we leverage the expertise of the CREMO team.”
Matthew Biggins, CREMO’s President and Chief Executive Officer, added, “This is a significant milestone for CREMO, a brand that we built to embody quality with professional grade characteristics. 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. 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.”
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The transaction, which is expected to close by the end of the fiscal 2021 first quarter, is subject to customary closing conditions. Perella Weinberg Partners LP acted as financial advisor and Wachtell Lipton Rosen & Katz acted as legal counsel to Edgewell on the transaction. Goldman Sachs & Co. LLC acted as financial advisor and Latham & Watkins acted as legal counsel to CREMO.