Unilever agreed to buy Dollar Shave Club, in a deal said to be worth about $1 billion, giving it a piece of the fast-growing business of selling grooming products online by subscription.

The consumer products maker is expected to close the deal, subject to regulatory approval, in the third quarter, Unilever said in a statement, without disclosing terms.

The company will pay cash, said people familiar with the terms, who asked not be identified as the valuation hasn’t been disclosed. Merlin Koene, a spokesman for Unilever, declined to comment.

Unilever, which got about 17 per cent of revenue from North America last year, will gain a subscription model Dollar Shave Club is using to take on brands such as Procter and Gamble’s Gillette and Edgewell Personal Care’s Schick in the estimated $3 billion US men’s shaving products market.

The acquisition would be Unilever’s biggest since the more than $3 billion deal to raise its majority holding in its Indian affiliate, Hindustan Unilever in 2013, according to data compiled by Bloomberg.

At the $1 billion price, Unilever is paying five times Dollar Shave Club’s projected revenue this year.

California-based Dollar Shave Club has used advertising making fun of the high price and technical development of razor blades to boost sales, which the company forecasts at $200 million this year, up from $4 million in 2012.

Representatives for Dollar Shave Club could not be reached outside California office hours.

Dollar Shave Club has 3.2 million members, according to the statement. The company sells razors for as little as $1 a month, as well as shaving supplies. It recently expanded its product line into hair care, offering pomade and hair cream that’s made a comeback with young male consumers.

Bloomberg