After a complaint from the Federal Trade Commission, Edgewell Personal Care has called off its plan to buy Harry’s Inc., the company said in a statement Monday.
Harry’s Inc. is said to be pursuing litigation, which Edgewell said “has no merit.”
The news comes shortly after the FTC sued to block the planned $1.37 billion merger of Edgewell and Harry’s. That deal would have given Edgewell, the owner of Schick and Skintimate, two more grooming brands — Harry’s and Flamingo.
The FTC said in a statement: “The loss of Harry’s as an independent competitor would remove a critical disruptive rival that has driven down prices and spurred innovation in an industry that was previously dominated by two main suppliers, one of whom is the acquirer.”
Edgewell said Monday that it was moving on as a standalone company.
“We are disappointed by the FTC’s decision and continue to disagree with its position,” said Rod Little, Edgewell’s president and chief executive officer. “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 standalone strategy is the best course of action for Edgewell and our shareholders.”
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