What's new

Edgewell Personal Care will NOT purchase Harry's

Several months ago, Edgewell Personal Care announced a plan to purchase Harry's, including the new razor plant Harry's built in Germany. The plan was approved by both companies. However, since Edgewell produces Personna, Schick, and Wilkinson Sword Classic among their various brands, the US Federal Trade Commission sued to block the sale on the grounds that the combined company would reduce competition in the razor blade market with potential higher prices for consumers. Edgewell has decided that fighting the lawsuit in court would be too costly. Thus, plans for the buyout have been scrapped.

Apparently, Edgewell stockholders are pleased at the announcement, their stock climbed significantly. Although Harry's has experienced significant growth, they have been losing money. Harry's is not pleased with Edgewell dropping their buyout plans.

Around the same time as the the earlier announcement of the buyout, Edgewell announced they would be closing the Personna manufacturing plant in Bethlehem, Israel. Presumably, this was part of reorganization plans to consolidate following the acquisition of the Harry's plant in Germany. However, now that this will not be occurring, I wonder what will happen with the plant in Israel. Since one of my favorite blade brands, Personna Israeli Reds, is made in the Bethlehem plant, I rather hope that it keeps operating.
 
I am sure the people who live in the West Bank appreciate that it will not be closing. Not much work there
 
I thought the project to close the plant pre-dated any plans to buy Harry's. That wasn't the German plant they likely would have moved production to anyway; Edgewell has the plant in Solingen where Wilkinson Sword blades are made.

But who knows. The Nazareth plant was supposed to be closed by now anyway, if they stuck to their original schedule. But then, if there's one thing I know about large company projects, it's that you're more likely to see the abominable snowman riding a unicorn over a double rainbow than to see a project finish on schedule.

I thought it was interesting that Edgewell's stock went up after news of the failed sale. The market must have thought they were overpaying for Harry's. Which they might well have been doing, but I'm not qualified to have an informed opinion about it.
 

Seveneighth

Contributor
Ambassador
Interesting take on this here:

From which it sounds like Edgewell are in trouble anyway, so will probably continue with factory closures. It also sounds like Harry's don't have great prospects without the buyout either.
 
The initial announcement that Edgewell would purchase Harry's came in May 2019. The announcement of the closure of the Israeli plant came in July 2019. Thus, it is reasonable to assume that the two announcements are in some way linked. However, that may not be the case. We will have to wait and see what happens.

Is the Wilkinson Sword plant in Germany sufficiently large to accommodate making blades for Personna, Crystal, and a large number of private label products in addition to the Wilkinson Sword Classic blades? I do not know the answer to that one.
 
The initial announcement that Edgewell would purchase Harry's came in May 2019. The announcement of the closure of the Israeli plant came in July 2019. Thus, it is reasonable to assume that the two announcements are in some way linked. However, that may not be the case. We will have to wait and see what happens.

Is the Wilkinson Sword plant in Germany sufficiently large to accommodate making blades for Personna, Crystal, and a large number of private label products in addition to the Wilkinson Sword Classic blades? I do not know the answer to that one.
The announcement was made in October 2018.


Nazareth Production Facility In October 2018, the Company announced its intention to close its production facility in Nazareth, Israel as part of Project Fuel. The production from this site will be redistributed across multiple locations best positioned to serve regional needs. The transfer of production will take approximately 12 to 18 months to complete during which the facility will continue to operate.
 
I’m optimistic that there might be Solingen Reds in the near future. Munich Reds? Cincinnati Reds?
Well, once upon a time the private label blades on the hang tag in the drugstore said "made in USA", then starting about 20 years ago they said "made in Israel", and now at some point in the indeterminate future they'll say "made in Germany" or "made in EU" or something like that instead. And then we can decide what we think of them. The Israel blades weren't quite like the USA made blades, but they made lots of people happy. All we can do is hope that whatever comes out of Germany in the near future is a blade that makes lots of people happy.
 
Well, once upon a time the private label blades on the hang tag in the drugstore said "made in USA", then starting about 20 years ago they said "made in Israel", and now at some point in the indeterminate future they'll say "made in Germany" or "made in EU" or something like that instead. And then we can decide what we think of them. The Israel blades weren't quite like the USA made blades, but they made lots of people happy. All we can do is hope that whatever comes out of Germany in the near future is a blade that makes lots of people happy.
Me too!
 
Top