The owner of Schick razors is ditching its deal to buy rival startup Harry’s — and Harry’s isn’t happy.
Edgewell Personal Care — which had planned to add Harry’s alongside its Schick brand in a $1.4 billion tie-up — said Monday it’s dropping the bid after the Federal Trade Commission raised concerns the deal could spur higher razor prices.
Last week, the FTC said in a statement it was moving to block the deal, confirming The Post’s exclusive report last month that it was scrutinizing the merger.
In a written statement, Edgewell also said that Harry’s informed the company that it planned to “pursue litigation,” and a source close to the situation confirmed that Harry’s was weighing a lawsuit against Edgewell over the scrapped deal.
Harry’s co-founders, Jeff Raider and Andy Katz-Mayfield, didn’t comment on possible litigation, but said in a statement they were “disappointed by the decision by Edgewell’s board not to see this process to its conclusion.”
The entrepreneurs said they believed they would have “prevailed in litigation” with the FTC, which filed a complaint last week to block the merger.
“Moving forward, we will continue to do what we do best: develop, manufacture and sell exceptional products at an honest price, and always put our customers first,” the founder said in a statement.
Edgewell said it believed Harry’s legal beef over the botched deal “has no merit.”
“We are disappointed by the FTC’s decision and continue to disagree with its position,” said Rod Little, Edgewell’s chief executive.
“After extensive consideration and discussion, and given the inherent uncertainty of a potential trial, the required investment of resources and time and the distraction that a continuing court battle would entail, we determined that proceeding with our stand alone strategy is the best course of action for Edgewell and our shareholders,” Little said.
The merger contract calls for both companies to use “reasonable best efforts to take all actions necessary” to “consummate the merger, including obtaining relevant governmental” approvals, noted antitrust lawyer Gregory Frank.
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