Helen of Troy sells personal care business to HRB Brands
Brands in Helen of Troy’s portfolio include Braun, Honeywell, Revlon, Bed Head, as well as brands producing deodorants and antiperspirants, such as Brut and Sure. The firm did not sell its Latin America and Caribbean personal care businesses.
HRB Brands, a privately-held company and one of the largest independent branded personal care companies in North America, acquired the business for $44.7 million (€37.5 million) in cash. The transaction also includes an option that provides HRB Brands the right to purchase the Latin America and Caribbean personal care business no later than the end of the fiscal year 2022.
Helen of Troy expects to use the proceeds to create further shareholder value in line with its capital allocation strategy, including paying down debt, making accretive acquisitions of additional leadership brands that are ‘a better fit’ with its long-term growth strategies, or engaging in opportunistic share re-purchases.
“We are excited about this opportunity for HRB Brands, a company that we believe is well-positioned to take the personal care business to its next phase of growth,” said Julien Mininberg, CEO of Helen of Troy.
“This transaction advances Helen of Troy’s strategy to focus its 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, deliver strong cash flow, and provide a global presence we can build on as we continue to execute our strategic transformation plan.
“Our leadership brands are among our highest volume and highest margin brands, which together comprised over 80% of global sales in fiscal year 2021.
“In our beauty segment, we continue to be focused on accelerating the growth of our global appliance and prestige liquids businesses under the Revlon, Drybar and HOT Tools brand names. We expect this divestiture to help us accelerate our top and bottom-line growth rates and allow us to redeploy the capital in line with Helen of Troy’s capital allocation strategy.”
Jim Daniels, CEO of HRB Brands, said: “We are very excited about today’s announcement to extend our trusted brand line-up. We are extremely pleased to add these respected, well-known brands with enduring equity competing primarily in hair care, deodorant, and fragrance categories.
“We believe this combination, together with our distinctive entrepreneurial culture, lean operating structure, and efficient business model, will enable HRB Brands to continue to bring innovative and category-leading innovations to market.”