Helen of Troy sells mass personal care business
Helen of Troy Limited sold its mass market personal care products business excluding Latin America and Caribbean regions to HRB Brands LLC, a privately held company which is one of the largest corporations independent personal care brands in North America, for $ 44.7 million in cash. The transaction also includes an option that gives HRB Brands LLC the right to purchase the personal care business in Latin America and the Caribbean no later than the end of fiscal 2022, subject to certain agreed conditions being met. The sale proceeds represent substantially all of the negotiated value for all of the global personal care business.
WHO: Helen of Troy Limited is a leading global consumer products company providing creative solutions to its customers through a strong portfolio of well-recognized and widely recognized brands including OXO, Hydro Flask, Vicks, Braun, Honeywell, PUR, Hot Tools and Drybar, called their leadership marks.
HRB Brands is a holding company of Tengram Capital Partners, a private equity firm whose investment strategy is based on leading mid-market consumer companies that own recognized brands such as Zest, V05, Coast, SGX NYC, Thicker Fuller Hair, LA Looks and others.
WHY: The transaction allows the company to focus more on growing its leadership brands. The company plans to use the proceeds to create further shareholder value in line with Helen of Troy’s capital allocation strategy, including debt repayment, making accretive acquisitions of additional leadership brands that better align with the long-term growth strategies of the Company’s portfolio. , or engage in opportunistic share buybacks.
IN THEIR OWN WORDS: Julien R. Mininberg, Chief Executive Officer, said: “We are excited about this opportunity for HRB Brands LLC, a company that we believe is well positioned to take the personal care business into its next phase of growth. . The Personal Care portfolio includes iconic brands such as Brut, Pert Plus, Sure, Infusium and Vitalis.
Mr. Mininberg continued, “This transaction advances Helen of Troy’s strategy of focusing resources on its growing portfolio of eight leadership brands. These are OXO, Hydro Flask, Vicks, Braun, PUR, Honeywell, Drybar and HOT Tools, all of which leverage our shared services platform, generate strong cash flow and offer a global presence on which we can support each other while continuing to execute our strategic transformation plan. Our leading brands are among our highest volume and highest margin brands, which together accounted for over 80% of global sales in fiscal 2021. In our Beauty segment, we continue to focus on accelerated growth in our global premium appliances and liquids business under the Revlon, Drybar and HOT Tools brands. We anticipate that this divestiture will help us accelerate our high and low growth rates and allow us to redeploy capital in accordance with Helen of Troy’s capital allocation strategy.
Jim Daniels, CEO of HRB Brands LLC, said, “We are very pleased to announce the expansion of our line of trusted brands. We are extremely excited to add these respected and well-known brands with enduring equity capital that primarily compete in the hair care, deodorant and fragrance categories. We believe that this combination, along with our distinctive entrepreneurial culture, lean operating structure and efficient business model, will allow HRB Brands LLC to continue to bring innovative and cutting-edge innovations to market.
- Helen of Troy Limited sold its consumer personal care business, excluding regions of Latin America and the Caribbean, to HRB Brands LLC for $ 44.7 million in cash.
- Cantor Fitzgerald provided principal advisory services and Baker & McKenzie LLP acted as legal counsel to Helen of Troy in connection with the transaction. Gibson Dunn acted as legal counsel to HRB Brands LLC in connection with the transaction.