For Helen of Troy, the divesture is an opportunity to concentrate on what the company calls its leadership brands in the consumer products space, both in and beyond beauty. “This transaction advances Helen of Troy’s strategy to focus its resources on its growing portfolio of eight leadership brands,” says CEO Julien R Mininberg, in his remarks to the media.
Those top-performing brands, says Mininberg “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,” he explains in this week’s media release about the divesture.
The deal does not include sale of the Helen of Troy personal care business as it exists in Latin America or the Caribbean at this time, but HRB Brands (High Ridge Brands Co.) does have the right to purchase those businesses before the end of fiscal year 2022.
Beauty brands remain key to Helen of Troy business
Helen of Troy is staying in both the beauty products and tools business. “In our beauty segment,” explains Mininberg, “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.”
A new name and a larger beauty portfolio for HRB Brands
HRB Brands owns several popular mass market personal care brands including, Alberto VO5, Coast, Zest, LA Looks, Salon Grafix, Pert, Sea Breeze, and Sure. And having just added to that portfolio with the Helen of Troy deal, HBB Brands has opted to rename the business; HRB Brands now stands for Healthy Responsible Beauty Brands, according to a separate press release circulated by HRB.
“Today’s acquisition complements, leverages, and builds upon the Company’s robust portfolio of personal care brands,” says William Sweedler, Tengram’s Managing Partner and Chairman of HRB Brands, adding that, “These well-known, iconic brands have strong consumer loyalty across distribution channels in North and South America.”
For HRB, the deal is also a chance to go global: “This strategic acquisition also brings with it a significant opportunity for international expansion,” says Jim Daniels, CEO of HRB Brands, in that company’s press release, noting that the acquired Helen of troy brands are already sold in several countries around the world.
“In addition,” says Daniels, “our management team has already begun development of renewed marketing and product innovation across the acquired portfolio that we will be sharing with our retail partners this spring.”