Unilever just announced that they would be purchasing Dollar Shave Club for $1 billion in an all cash transaction. So it appears that being a disruptor could land you a billion dollar payday. So this actually makes Dollar Shave a legit unicorn. Michael Dubin will remain CEO, he’s the guy we all loved from the great commercials of him confidently marching from his office through the warehouse and packing and shipping extolling the virtues of a non-brand name razor.
In terms of the Dollar Shave Club Brand, Allen Adamson, of Brand Simple Consulting clearly stated “If Unilever is smart it won’t muck with it. Typically, with an acquisition like this, most companies will homogenize the company they acquire and force their way of doing things on it, force them to use their agencies, do it their way and in doing it that way they miss a big opportunity to change how they market and how they advertise.”
Whether or not the price actually reflects the true value, time will tell. Bloomberg reported that Unilever paid five times revenue for the company. But on the flip side, Unilever is not buying the business so much as buying the relationship that Dollar Shave has built with its customer base, a good distinction to make. We constantly talk about how brands need to connect with their customers and build a relationship, Dollar Shave did it in spades. Its not so much about the razor so much as what Unilever might be able to sell through dollar shave to its customer base.
There’s a super congrats due to Dubin and everyone else at Dollar Shave Club and yeah we agree with Adamson, Unilever, don’t screw it up, you got a good thing.