Edgewell (NYSE: EPC), maker of Schick razors, agreed to buy shaving products company Harry's for $1.3 billion in cash and stock (79%/21% split).
Why it matters: Because it's a big pay-off for two moves considered high-risk at the time. First, Harry's at less than one year old taking out bank loans to pay $100 million for a German razor-making factory, rather than just outsourcing manufacturing (as Dollar Shave Club does). Second, jumping into the broader trend of direct-to-consumer startups expanding into multi-channel retail. A source close to the deal says that Harry's now trails just Gillette for in-store Walmart and Target men's shaving sales.