Press release
Helen of Troy Announces Agreement to Acquire Osprey® Packs, Inc.
Adds iconic, world-class, award-winning ninth Leadership Brand Complements and enhances outdoor platform Accelerates International strategy Expected to be
About this update from Helen Of Troy Limited
[{"type":"text","content":"\n\nAdds iconic, world-class, award-winning ninth Leadership Brand\n\n\nComplements and enhances outdoor platform\n\n\nAccelerates International strategy\n\n\nExpected to be accretive to consolidated sales growth rate, gross profit margin, adjusted EBITDA margin(1), adjusted diluted EPS(2), adjusted diluted EPS growth rate, and cash flow from operations\n\n\nClosely aligns with culture and Environmental, Social, and Governance (“ESG”) philosophy\n\n\nHelen of Troy to hold a conference call at 9:00 a.m. ET on Tuesday November 30\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, home, and beauty products, today announced that one of its subsidiaries has entered into a definitive agreement to acquire Osprey Packs, Inc. Founded in 1974, Osprey is a longtime U.S. leader in technical and everyday packs. Its outstanding product lineup includes a wide range of backpacks and daypacks for hiking, mountaineering, skiing, climbing, mountain biking, trail running, commuting, and school, as well as a rugged adventure travel packs, wheeled luggage, and travel accessories. The Company believes this acquisition will be an important next step as it advances its strategic goal of acquiring and investing in businesses that can accelerate profitable growth in categories where it can add value and leverage its scalable shared services and operating platform.\n\nThe total purchase consideration is expected to be approximately $414 million in cash, which includes the impact of an estimated $6 million favorable customary closing net working capital adjustment. The net purchase price implies a pre-synergy multiple of less than 13.5x estimated calendar year 2022 adjusted EBITDA(3), which compares favorably to Helen of Troy’s current EV/TTM adjusted EBITDA(4) multiple of approximately 17.5x. The Company expects Osprey’s calendar year 2021 net sales revenue to be $155 - $160 million.\n\nThe acquisition is expected to be accretive to Helen of Troy’s consolidated sales growth rate, gross profit margin, adjusted EBITDA margin(1), adjusted diluted EPS(2), adjusted diluted EPS(2) growth rate, and cash flow from operations. As a result of the acquisition, the Company expects to end fiscal 2022 with a post-acquisition pro forma debt/adjusted EBITDA ra...