Helen of Troy Limited (NASDAQ: HELE), designer, developer and
worldwide marketer of consumer brand-name housewares, health and
home and beauty products, today announced the successful completion
of its previously-announced acquisition of Drybar Products LLC, for
approximately $255 million in cash, subject to certain customary
closing adjustments. The purchase price implies a pre-synergy
multiple of less than 13x estimated calendar year 2019 adjusted
EBITDA1. Drybar is a fast-growing, innovative, trendsetting
prestige hair care and styling brand in the multi-billion-dollar
beauty industry. As part of the transaction, Helen of Troy granted
a worldwide license to Drybar Holdings LLC, the owner and long-time
operator of Drybar blowout salons, to use the Drybar trademark in
their continued operation of Drybar salons. The salons will
exclusively use, promote, and sell Drybar products globally.
Julien Mininberg, Helen of Troy CEO, commented: “We are very
pleased to complete the acquisition of Drybar, which adds a
highly-respected and fast-growing prestige brand to our Beauty
business, and an 8th Leadership Brand to Helen of Troy’s portfolio.
The acquisition aligns very well with our strategic goal of
investing in businesses that can accelerate profitable growth in
categories where we can add value and leverage our scalable
operating platform. We continue to expect Drybar to be immediately
accretive to key financial measures for both our Beauty segment and
Helen of Troy’s consolidated results, even before synergies. With
our strong cash flow, low leverage, and access to capital at
attractive rates, we continue to evaluate opportunities to deploy
capital, including additional strategic acquisitions or
opportunistic share repurchases.”
Mr. Mininberg continued: “We are delighted to welcome the Drybar
Products team to our family. Drybar is a compelling strategic fit
and we are pleased to add its prestige tier of hair appliances,
liquids, and accessories to our highly-established Beauty business.
We see excellent upside potential for growth in the product lineup,
continued retail momentum and door expansion with key customers,
and the expected expansion of the Drybar salon footprint both in
the U.S. and internationally. We believe we can add further value
through Helen of Troy’s shared services, larger infrastructure, and
international footprint and create value for consumers, customers
and our shareholders.”
Non-GAAP Financial
Measures
The Company reports and discusses its operating results using
financial measures consistent with accounting principles generally
accepted in the United States of America (“GAAP”). To supplement
its presentation, the Company discloses certain financial measures
that may be considered non-GAAP financial measures, such as
adjusted EBITDA.
- Adjusted EBITDA is defined as earnings before interest, taxes,
depreciation, amortization, non-cash asset impairment charges,
restructuring charges, acquisition-related expenses, and non-cash
share-based compensation.
About Helen of Troy
Limited
Helen of Troy Limited (NASDAQ: HELE) 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 OXO, Hydro Flask, Vicks, Braun,
Honeywell, PUR, Hot Tools and Drybar. All trademarks herein belong
to Helen of Troy Limited (or its affiliates) and/or are used under
license from their respective licensors.
For more information about Helen of Troy, please visit
http://investor.hotus.com/
Forward Looking Statements
Certain written and oral statements made by the Company and
subsidiaries of the Company may constitute “forward-looking
statements” as defined under the Private Securities Litigation
Reform Act of 1995. This includes statements made in this press
release. Generally, the words “anticipates”, “believes”, “expects”,
“plans”, “may”, “will”, “should”, “seeks”, “estimates”, “project”,
“predict”, “potential”, “continue”, “intends”, and other similar
words identify forward-looking statements. All statements that
address operating results, events or developments that the Company
expects or anticipates will occur in the future, including
statements related to sales, earnings per share results, and
statements expressing general expectations about future operating
results, are forward-looking statements and are based upon its
current expectations and various assumptions. The Company believes
there is a reasonable basis for these expectations and assumptions,
but there can be no assurance that the Company will realize these
expectations or that these assumptions will prove correct.
Forward-looking statements are subject to risks that could cause
them to differ materially from actual results. Accordingly, the
Company cautions readers not to place undue reliance on
forward-looking statements. 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, 2019, and in
the Company's 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 Company's
ability to deliver products to its customers in a timely manner and
according to their fulfillment standards, the costs of complying
with the business demands and requirements of large sophisticated
customers, the Company's relationships with key customers and
licensors, its dependence on the strength of retail economies and
vulnerabilities to any prolonged economic downturn, its dependence
on sales to several large customers and the risks associated with
any loss or substantial decline in sales to top customers,
expectations regarding any proposed restructurings, its recent,
pending and future acquisitions or divestitures, including its
ability to realize anticipated cost savings, synergies and other
benefits along with its ability to effectively integrate acquired
businesses or separate divested businesses, circumstances which may
contribute to future impairment of goodwill, intangible or other
long-lived assets, the retention and recruitment of key personnel,
foreign currency exchange rate fluctuations, risks associated with
weather conditions, the duration and severity of the cold and flu
season and other related factors, its dependence on foreign sources
of supply and foreign manufacturing, and associated operational
risks including, but not limited to, long lead times, consistent
local labor availability and capacity, and timely availability of
sufficient shipping carrier capacity, labor and energy on cost of
goods sold and certain operating expenses, the risks associated
with significant tariffs or other restrictions on imports from
China or any retaliatory trade measures taken by China, the
geographic concentration and peak season capacity of certain U.S.
distribution facilities increases its exposure to significant
shipping disruptions and added shipping and storage costs, its
projections of product demand, sales and net income are highly
subjective in nature and future sales and net income could vary in
a material amount from such projections, the risks associated with
the use of trademarks licensed from and to third parties, its
ability to develop and introduce a continuing stream of new
products to meet changing consumer preferences, trade barriers,
exchange controls, expropriations, and other risks associated with
U.S. and foreign operations, the risks to its liquidity as a result
of changes to capital and credit market conditions, limitations
under its financing arrangements and other constraints or events
that impose constraints on its cash resources and ability to
operate its business, the costs, complexity and challenges of
upgrading and managing its global information systems, the risks
associated with cybersecurity and information security breaches,
the risks associated with global legal developments regarding
privacy and data security could result in changes to our business
practices, penalties, increased cost of operations, or otherwise
harm our business, the risks associated with product recalls,
product liability, other claims, and related litigation against us,
the risks associated with accounting for tax positions, tax audits
and related disputes with taxing authorities, the risks of
potential changes in laws in the U.S. or abroad, including tax
laws, regulations or treaties, employment and health insurance laws
and regulations, and laws relating to environmental policy,
personal data, financial regulation, transportation policy and
infrastructure policy along with the costs and complexities of
compliance with such laws, its ability to continue to avoid
classification as a controlled foreign corporation, and legislation
enacted in Bermuda and Barbados in response to the European Union’s
review of harmful tax competition could adversely affect our
operations. The Company undertakes no obligation to publicly update
or revise any forward-looking statements as a result of new
information, future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200123005850/en/
Investor Contact: Helen of Troy Limited Anne Rakunas,
Director, External Communications (915) 225-4841
ICR, Inc. Allison Malkin, Partner (203) 682-8200
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