- Transaction helps further focus the
Company on growing its Leadership Brands
- Company to discuss transaction during its first quarter fiscal
2022 earnings conference call
Helen of Troy Limited (NASDAQ: HELE), designer, developer, and
worldwide marketer of consumer brand-name housewares, health and
home, and beauty products, today announced it has sold its mass
market Personal Care business, not including the Latin America and
Caribbean regions, to HRB Brands LLC, a privately-held company that
is one of the largest independent branded personal care companies
in North America for $44.7 million in cash. The transaction also
includes an option that provides HRB Brands LLC the right to
purchase the Latin America and Caribbean Personal Care businesses
no later than the end of fiscal year 2022, subject to meeting
certain agreed-upon conditions. Proceeds from the sale announced
today represent substantially all of the negotiated value for the
total global Personal Care business.
The Company expects to use the proceeds to create further
shareholder value in line with Helen of Troy’s capital allocation
strategy, including paying down debt, making accretive acquisitions
of additional Leadership Brands that are a better fit with the
long-term growth strategies for the Company’s portfolio, or
engaging in opportunistic share repurchases. The Company will
discuss the transaction during its first quarter fiscal year 2022
earnings conference call, which is expected to take place in early
July 2021.
Julien R. Mininberg, Chief Executive Officer, stated: “We are
excited about this opportunity for HRB Brands LLC, a company that
we believe is well-positioned to take the Personal Care business to
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 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 LLC, said, “We are very excited
about today’s announcement to extend our trusted brand lineup. We
are extremely pleased to add these respected, well-known brands
with enduring equity competing primarily in the 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 LLC to continue to bring innovative and category leading
innovations to market.”
Cantor Fitzgerald provided lead advisory services and Baker
& McKenzie LLP served as legal counsel to Helen of Troy on the
transaction. Gibson Dunn served as legal counsel to HRB Brands LLC
on the transaction.
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. We sometimes refer to these
brands as our Leadership Brands. 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.helenoftroy.com/
About HRB Brands LLC:
HRB Brands LLC is a portfolio company of Tengram Capital
Partners, a private equity firm with an investment strategy
predicated on leading middle market consumer companies that own
strong recognizable brands including ZEST®, V05®, COAST®, SGX NYC®,
THICKER FULLER HAIR®, LA LOOKS® and others.
For additional information about HRB Brands LLC, please visit
https://www.highridgebrands.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, 2021, 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 successfully manage the demand, supply, and operational
challenges associated with the actual or perceived effects of
COVID-19 and any similar future public health crisis, pandemic or
epidemic, the Company's ability to deliver products to its
customers in a timely manner and according to their fulfillment
standards, actions taken by large customers that may adversely
affect the Company's gross profit and operating results, the
Company's dependence on the strength of retail economies and
vulnerabilities to any prolonged economic downturn, including from
the effects of COVID-19, the Company's dependence on sales to
several large customers and the risks associated with any loss of,
or substantial decline in, sales to top customers, expectations
regarding recent acquisitions and any future acquisitions or
divestitures, including the Company's ability to realize related
synergies along with its ability to effectively integrate acquired
businesses or disaggregate divested businesses, the Company's
reliance on its Chief Executive Officer and a limited number of
other key senior officers to operate its business, obsolescence or
interruptions in the operation of the Company's central global
Enterprise Resource Planning (“ERP”) systems and other peripheral
information systems, occurrence of cyber incidents or failure by
the Company or its third-party service providers to maintain
cybersecurity and the integrity of confidential internal or
customer data, the Company's dependence on third-party
manufacturers, most of which are located in the Far East, and any
inability to obtain products from such manufacturers, risks
associated with weather conditions, the duration and severity of
the cold and flu season and other related factors, the geographic
concentration and peak season capacity of certain U.S. distribution
facilities which increase its risk to disruptions that could affect
the Company's ability to deliver products in a timely manner, risks
associated with the use of licensed trademarks from or to third
parties, the Company's ability to develop and introduce a
continuing stream of innovative new products to meet changing
consumer preferences, the risks associated with trade barriers,
exchange controls, expropriations, and other risks associated with
domestic and foreign operations, the risks associated with
significant changes in regulations, interpretations or product
certification requirements, the risks associated with global legal
developments regarding privacy and data security that could result
in changes to its business practices, penalties, increased cost of
operations, or otherwise harm the business, the risks associated
with accounting for tax positions and the resolution of tax
disputes, the risks of potential changes in laws and regulations,
including environmental, health and safety and tax laws, and the
costs and complexities of compliance with such laws, the Company's
ability to continue to avoid classification as a Controlled Foreign
Corporation, the risks associated with legislation enacted in
Bermuda and Barbados in response to the European Union’s review of
harmful tax competition, the risks of significant tariffs or other
restrictions being placed on imports from China or Mexico or any
retaliatory trade measures taken by China or Mexico, the risks
associated with product recalls, product liability and other claims
against the Company, and associated financial risks including but
not limited to, significant impairment of the Company's goodwill,
indefinite-lived and definite-lived intangible assets or other
long-lived assets, risks associated with foreign currency exchange
rate fluctuations, increased costs of raw materials, energy and
transportation, projections of product demand, sales and net
income, which are highly subjective in nature, and from which
future sales and net income could vary in a material amount, the
risks to the Company's liquidity or cost of capital which may be
materially adversely affected by constraints or changes in the
capital and credit markets and limitations under its financing
arrangements. 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/20210608005930/en/
Investor: Helen of Troy Limited Anne Rakunas, Director,
External Communications (915) 225-4841
ICR, Inc. Allison Malkin, Partner (203) 682-8200
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