Press release
Helen of Troy Announces Agreement to Acquire Drybar® Prestige Hair Care Products
Adds fast-growing, award-winning prestige haircare products platform to its Leadership Brand portfolio Expected to be immediately accretive to sales growth
About this update from Helen Of Troy Limited
[{"type":"text","content":"\n\nAdds fast-growing, award-winning prestige haircare products platform to its Leadership Brand portfolio\n\n\nExpected to be immediately accretive to sales growth rate, gross profit margin, adjusted EBITDA margin, adjusted diluted EPS and cash flow from operations\n\n\nHelen of Troy to hold a conference call at 11:00 a.m. ET today\n\n\n EL PASO, TEXAS--(BUSINESS WIRE)--\nHelen of Troy Limited (NASDAQ: HELE), designer, developer and worldwide marketer of consumer brand-name housewares, health and home, and beauty products, today announced that the company has entered into a definitive agreement to acquire Drybar Products LLC, which includes the Drybar trademark and other intellectual property assets associated with Drybar’s products, as well as certain related production assets and working capital. 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 will grant 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 acquisition is expected to close by January 31, 2020, subject to customary closing conditions, including regulatory approvals.\n\n\nWe believe that the Drybar Products acquisition is an excellent fit 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. The total purchase consideration is expected to be approximately $255 million in cash, subject to certain customary closing adjustments. This implies a pre-synergy multiple of less than 13x estimated calendar year 2019 adjusted EBITDA1, which compares favorably to Helen of Troy’s current Enterprise Value (EV)2/TTM adjusted EBITDA3 multiple of approximately 16.4x. Calendar year 2019 net sales revenue is expected to be $64 - $66 million. The acquisition is expected to be immediately accretive to our consolidated sales growth rate, gross profit margin, adjusted EBITDA margin4, adjusted diluted EPS5, and cash flow from operations. We expect it to be even more accretive to the Beauty segment on comparable operating measures. Due to our strong cash flow generation in the second half of the fiscal year, we expect t...