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Fly News Breaks for February 22, 2017
UN, UL, EPC
Feb 22, 2017 | 07:37 EDT
RBC Capital analyst Nik Modi says that Edgewell (EPC) is the most likely takeover target in the household and personal care space. He sees some parallels between Edgewell and Gillette in 2004. In that year Gilette launched a cost cutting initiative which doubled its profit per employee and raised its EBIT margin by over five percentage points, according to the analyst. Additionally, Modi says that a larger, multi-national company could bring the products of Edgewell's Schick unit to many more markets. Given the multiple problems with Unilever's (UL,UN) Dollar Shave Club, Unilever "is a leading suitor for Edgewell," according to Modi.
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