Spectrum Brands has stated that it did not offer to acquire the British company, with whom it has a multi-year distribution agreement through its Remington personal care division based in North America.
Potential bids
According to British daily newspaper The Independent, the “British maker of shaving oils and razors, is set for a hefty windfall after receiving takeover approaches that could value the independent UK business at up to £45m.”
Likewise, King of Shaves “reportedly received at least two potential bids, including one from US shaving giant Remington, and another from Kai Industries, which already owns 21 percent of King of Shaves.”
The Press Association reiterated this, adding that earlier in the year, the company was valued at £25m in a deal struck with Kai Industries, when the Japanese razor blade supplier increased its holding after taking a 7 percent stake for £1.5m in King of Shaves.
Distribution agreement
Spectrum Brands is not buying King of Shaves, but it entered into a multi-year distribution agreement in November 2010.
As part of the contract, Spectrum’s Remington division, which consists of electric shavers, grooming and styling products, will distribute King of Shave’s products in the United States, Canada and Mexico.
Remington is launching King of Shaves Azor 5 line of 5-blade razors, disposable cartridges, and shaving gels in the US, where the men’s wet shave market is estimated at nearly $2 billion in annual retail sales, and is growing at a compound annual rate of approximately 4 percent.