Helen of Troy Limited Announces Acquisition of Vicks VapoSteam Business from the Procter & Gamble Company
March 31 2015 - 5:35PM
Business Wire
Helen of Troy Limited (NASDAQ, NM:HELE), designer, developer and
worldwide marketer of brand-name personal care, health care, home
environment and household consumer products, announced today that
it has, through its subsidiaries, acquired the Vicks VapoSteam U.S.
liquid inhalant business from The Procter & Gamble Company
(“P&G”), which includes a fully paid-up license to the Vicks
VapoSteam trademarks. In a related transaction, the Company has
also acquired a fully paid-up license of P&G’s Vicks VapoPad
trademarks for scent pads in the United States. The vast majority
of Vicks VapoSteam and VapoPads are used in Vicks humidifiers,
vaporizers and other health care devices already marketed by Helen
of Troy. The transaction includes the acquisition of certain
production assets and the inventory related to the above
categories, as well as the right to use related intellectual
property. The VapoSteam acquisition is expected to be financed with
the Company’s revolving credit facility. The United States Vicks
VapoSteam business associated with the transaction had annual
revenues of approximately $10 million in calendar year 2014.
Julien R. Mininberg, Chief Executive Officer, stated: “Acquiring
the U.S. rights to Vicks VapoSteam makes us a leading player in the
inhalant category. Adding VapoSteam to our existing VapoPads
inhalant further strengthens our U.S. humidifier and vaporizer
business, with consumable refills in both the liquid and pad form
that deliver the distinctive Vicks scent and relief consumer’s
love. By combining the businesses of devices and consumables, we
are now able to give inhalants greater marketing focus and to
invest in additional new product development. With excellent
historical gross margins above our Company average, these
transactions are expected to further enhance the profitability of
our Healthcare/Home Environment segment, add incremental cash flow
to Helen of Troy at an attractive valuation, and be accretive in
fiscal year 2016. We are also delighted to deepen our long-term
partnership with P&G.”
About Helen of Troy Limited:
Helen of Troy Limited is a leading global consumer products
company offering creative solutions for its customers through a
strong portfolio of well-recognized and widely-trusted brands,
including: Housewares: OXO®, Good Grips®, Soft Works®, OXO tot® and
OXO Steel®; Healthcare/Home Environment: Vicks®, Braun®,
Honeywell®, PUR®, Febreze®, Stinger®, Duracraft® and SoftHeat®; and
Personal Care: Revlon®, Vidal Sassoon®, Dr. Scholl's®, Pro Beauty
Tools®, Sure®, Pert®, Infusium23®, Brut®, Ammens®, Hot Tools®, Bed
Head®, Karina®, Ogilvie® and Gold 'N Hot®. The Nutritional
Supplements segment was formed with the recent acquisition of
Healthy Directions, a U.S. market leader in premium doctor-branded
vitamins, minerals and supplements, as well as other health
products sold directly to consumers. The Honeywell® trademark is
used under license from Honeywell International Inc. The Vicks®,
Braun®, Febreze® and Vidal Sassoon® trademarks are used under
license from The Procter & Gamble Company. The Revlon®
trademark is used under license from Revlon Consumer Products
Corporation. The Bed Head® trademark is used under license from
Unilever PLC. The Dr. Scholl's® trademark is used under license
from MSD Consumer Care, Inc. For more information, please visit
www.hotus.com.
Forward Looking
Statements:
This press release may contain forward-looking statements, which
are subject to change. The forward-looking statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Any or all of the forward-looking
statements may turn out to be wrong. They can be affected by
inaccurate assumptions or by known or unknown risks and
uncertainties. Many of these factors will be important in
determining the Company's actual future results. Consequently, no
forward-looking statement can be guaranteed. Actual future results
may vary materially from those expressed or implied in any
forward-looking statements. The forward-looking statements are
qualified in their entirety by a number of risks that could cause
actual results to differ materially from historical or anticipated
results. Generally, the words "anticipates", "estimates",
"believes", "expects", "plans", "may", "will", "should", "seeks",
"project", "predict", "potential", "continue", "intends", and other
similar words identify forward-looking statements. The Company
cautions readers not to place undue reliance on forward-looking
statements. The Company intends its forward-looking statements to
speak only as of the time of such statements, and does not
undertake to update or revise them as more information becomes
available. The forward-looking statements contained in this press
release should be read in conjunction with, and are subject to and
qualified by, the risks described in the Company's Form 10-K
for the year ended February 28, 2014 and in our other filings with
the SEC. Investors are urged to refer to the risk factors referred
to above for a description of these risks. Such risks include,
among others, the departure and recruitment of key personnel, the
Company's ability to deliver products to our customers in a timely
manner, the costs of complying with the business demands and
requirements of large sophisticated customers, the Company's
relationship with key customers and licensors, our dependence on
the strength of retail economies and vulnerabilities to an economic
downturn, expectations regarding acquisitions and the integration
of acquired businesses, exchange rate risks, disruptions in U.S.,
European and other international credit markets, risks associated
with weather conditions, the Company’s dependence on foreign
sources of supply and foreign manufacturing, risks associated with
the availability, purity and integrity of materials used in
nutritional supplements, the impact of changing costs of raw
materials and energy on cost of goods sold and certain operating
expenses, the Company's geographic concentration of certain U.S.
distribution facilities, which increases our exposure to
significant shipping disruptions and added shipping and storage
costs, the Company's projections of product demand, sales, net
income and earnings per share are highly subjective and our future
net sales revenue and net income could vary in a material amount
from such projections, circumstances that may contribute to future
impairment of goodwill, intangible or other long-lived assets, the
risks associated with the use of trademarks licensed from and to
third parties, the Company's ability to develop and introduce
innovative new products to meet changing consumer preferences,
increased product liability and reputational risks associated with
the formulation and distribution of nutritional supplements, risks
associated with adverse publicity and negative public perception
regarding the use of nutritional supplements, trade barriers,
exchange controls, expropriations, and other risks associated with
foreign operations, the Company’s debt leverage and the constraints
it may impose, the costs, complexity and challenges of upgrading
and managing our global information systems, the risks associated
with information security breaches, the increased complexity of
compliance with a number of new government regulations as a result
of adding nutritional supplements to the Company’s portfolio of
products, the risks associated with tax audits and related disputes
with taxing authorities, potential changes in laws, including tax
laws, and the Company's ability to continue to avoid classification
as a controlled foreign corporation.
ICR, Inc.Allison Malkin / Anne
Rakunas203-682-8200 / 310-954-1113
Helen of Troy (NASDAQ:HELE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Helen of Troy (NASDAQ:HELE)
Historical Stock Chart
From Apr 2023 to Apr 2024