Edgewell Personal Care (EPC) - Get Report , which owns the Schick and Wilkinson razor brands, as well as Hawaiian Tropic, saw its shares sink Thursday after it reached a deal to buy shaving startup Harry's for $1.37 billion in cash and stock.

The New York Times had reported the deal could be announced Thursday.

Harry's founders and co-CEOs Andy Katz-Mayfield and Jeff Raider will run Edgewell's operations in the United States.

"The combination of Edgewell and Harry's is a pivotal step forward in further transforming our organization and strengthening our competitive position and ability to drive sustained growth and value creation," said Rod Little, Edgewell's president and CEO in a statement.

About 79% of the deal will be paid in cash and 21% will be paid in Edgewell common stock. Upon completion of the transaction, Harry's shareholders will own about 11% of Edgewell, the companies said.

The transaction is expected to close by the end of the first quarter of 2020.

Edgewell shares were dropping 9.8% to $35.92 on Thursday.