Dollar Shave Club Acquired By Unilever

The makers of some of the most entertaining commercials in history, Dollar Shave Club, will soon be part of Unilever.

According to reports, Unilever will purchase Dollar Shave Club as part of its overall strategy to expand its consumer goods and personal care line of business. Financial terms of the team have not been disclosed, though reports in Fortune indicate that the deal will be for around $1 billion in cash.

Dollar Shave Club, which gives customers the option of getting a new razor in the mail once a month for as little as $1, is expected to see its turnover grow from $152 million in 2015 to $200 million by the end of 2016. Since launching in 2011, the firm has expanded to other items including hair care and “butt wipes” (their term, not ours).

Unilever is the Anglo-Dutch firm behind Axe, Dove and Pond’s — and it is one of the world’s largest players in a sector that directly competes with P&G and Colgate-Palmolive.

Dollar Shave Club founder and CEO Michael Dubin will stay on, and DSC will continue to operate autonomously though the CEO will now answer to a “trio of Unilver execs.” In a Recode interview, Dubin noted the allegedly billion-dollar deal came out of discussions surrounding Unilever possibly investing since the business was not looking for a buyer at the time. Though Dollar Shave Club is not yet profitable, Dubin forecast in May that the service would be by the end of the year.

“We weren’t looking to be acquired … but he did a really great job convincing us of a few things,” Dubin said, including “how ambitious and aggressive and innovative they are” and “the economies of scale they can bring in a lot of different areas.”

“I just built up a trust with this guy,” Dubin added, referring to Kees Kruythoff, Unilever’s president of North America.