Edgewell Personal Care surged 28% after the owner of Schick razors cut off its pursuit of upstart shaving company Harry’s. The move comes just days after the U.S. sued to block the proposed $1.37 billion deal. The Federal Trade Commission cited antitrust issues in trying to derail the purchase. Schick is the No. 2 razor company in the U.S. behind Gillette.
Both brands have slashed prices and overhauled their sales operations in recent years in response to the rise of Harry’s and rival Dollar Shave Club, which both started as direct-to-consumer digital brands. Harry’s had hoped to capitalize on Edgewell’s large distribution channels and Schick’s blade technology. Edgewell believed that it would be able to leverage Harry’s direct-to-consumer marketing base and digital savvy.