Sale of Harry's to Edgewell Personal Care Blocked by FTC

I find this particularly fascinating; the FTC has sued to block Edgewell Personal Care (maker of Schick razors) from acquiring Harry’s in a deal valued at $1.37 billion. Per the article, the FTC’s rationale is that Harry’s has been a benefit to consumers.

“Harry’s ‘has forced its rivals to offer lower prices, and more options, to consumers across the country,’ Daniel Francis, deputy director of the FTC’s bureau of competition, said in a statement.”

The article also claims that Harry’s is not profitable. If the strategy is to grow and burn cash until you are acquired, and the exit is blocked, what happens next? Should Edgewell and Harry’s decide not to fight this in court, it will be interesting to see how the VC community responds.

growth venture capital
Source: Brent Kendall and Sharon Terlep | "FTC Sues to Block Shaving Merger" | The Wall Street Journal | 02/03/2020 | Visit