Press release
Helen of Troy Announces Agreement to Extend Revlon® License for Hair Care Appliances and Tools
Agreement fuels Beauty business by providing for a fully paid-up, 100-year, exclusive global license of Revlon trademark for hair care appliances and tools
About this update from Helen Of Troy Limited
[{"type":"text","content":"\nAgreement fuels Beauty business by providing for a fully paid-up, 100-year, exclusive global license of Revlon trademark for hair care appliances and tools and eliminating ongoing royalties\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, announced today that it has, through its subsidiaries, entered into an amended and extended Trademark License Agreement with Revlon to license Revlon’s trademark for hair care appliances and tools (the “Revlon License”). The terms of the Revlon License grant Helen of Troy an exclusive, global, fully paid-up license to use the Revlon trademark to manufacture, sell and distribute licensed merchandise through December 31, 2060 with, at our option, three additional 20-year auto renewal periods. In exchange for this 100-year exclusive global license, the Company paid a one-time, up-front license fee of $72.5 million in cash and will no longer pay ongoing royalties. The transaction implies a multiple of less than 9 times estimated fiscal year 2022 after-tax cash flows and provides for long-term continuity of our right to use the Revlon trademark and related intellectual property. The transaction also leverages our strong balance sheet and efficient debt structure to further accelerate our value creation flywheel. The up-front license fee of $72.5 million is expected to be funded using the Company’s cash on hand.\n\nJulien R. Mininberg, Chief Executive Officer, stated: “Revlon has been an important brand in Helen of Troy’s Beauty portfolio since 1992. As part of Helen of Troy’s overall transformation, our global hair appliance business has more than doubled in recent years and made significant gains in profitability and market share. Our Revlon products have led the way in the United States, Canada, Europe, and Latin America. Outstanding innovation has been a key driver in delighting consumers and winning awards around the world. Our strong portfolio of Beauty brands is now the market share leader online in the U.S. hair appliance category, a share leader in several of the largest U.S. brick & mortar customers, and growing rapidly in all major channels.\n\nThe fully paid up 100-year Revlon License we are announcing today is a major step forward in Helen of Tr...