附近上门

The Federal Trade Commission has filed a suit to block the acquisition of direct-to-consumer razor startup by Schick razor parent company .

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In the , which was on Monday, the FTC claims Harry鈥檚 joining Edgewell would likely lead to 鈥渟ignificant harm by eliminating competition.鈥�

鈥淗arry鈥檚 is a uniquely disruptive competitor in the wet shave market, and it has forced its rivals to offer lower prices, and more options, to consumers across the country,鈥� Daniel Francis, deputy director of the FTC鈥檚 Bureau of Competition, said in a statement. 鈥淭he Harry鈥檚 and Flamingo brands represent a significant and growing competitive threat to the two firms that have dominated the wet shaving market for decades. Edgewell鈥檚 effort to short-circuit competition by buying up its newer rival promises serious harm to consumers.鈥�

Edgewell announced in May 2019 it intended to buy Harry鈥檚 for $1.4 billion. But this suit is a significant roadblock for the companies. The FTC voted unanimously to issue the complaint and to seek a restraining order and preliminary injunction on the deal, and an administrative trial is scheduled for June 30.

鈥淗arry鈥檚 successful 2016 leap from online, direct-to-consumer sales into brick-and-mortar retail stores interrupted over a decade of routine price increases by a once-stable duopoly,鈥� the complaint reads. 鈥淭his interruption has led to lower prices and new product offerings for razor consumers. The proposed acquisition would neutralize 鈥榦ne of the most successful challenger brands ever built,鈥� eliminating head-to-head competition between Harry鈥檚 and Edgewell, and removing the independent competitor that disrupted Edgewell and P&G鈥檚 longstanding and stable duopoly.鈥�

Harry鈥檚 has become a popular direct-to-consumer brand for razors, raising in total funding, according to 附近上门. Its most recent raise was a $112.6 million Series D in December 2017. It competes with razor giants like Edgewell and (owner of Gillette), but also with , which was acquired by .

Edgewell CEO Rod Little and Harry鈥檚 co-CEOs Jeff Raider and Andy Katz-Mayfield expressed disappointment in the FTC鈥檚 suit in a statement issued Monday.

“We are disappointed that the FTC is attempting to block our combination with Edgewell and are evaluating the best path forward,鈥� Raider and Katz-Mayfield said. 鈥淲e believe strongly that the combined company will deliver exceptional brands and products at a great value and are determined to bring those benefits to consumers.鈥�

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