Press release
Helen of Troy Announces Curlsmith® Prestige Hair Care Products Acquisition
Adds fast-growing, premium, and category-leading brand created for curly and wavy hair Tuck-in acquisition complements and enhances the Company’s prestige
About this update from Helen Of Troy Limited
[{"type":"text","content":"\n\nAdds fast-growing, premium, and category-leading brand created for curly and wavy hair\n\n\nTuck-in acquisition complements and enhances the Company’s prestige Beauty platform\n\n\nExpected to be immediately 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 Helen of Troy culture and Environmental, Social, and Governance (“ESG”) philosophy\n\n\n EL PASO, Texas--(BUSINESS WIRE)--\nHelen of Troy Limited (NASDAQ: HELE), designer, developer and worldwide marketer of consumer brand-name home, outdoor, health, wellness, and beauty products, today announced that one of its subsidiaries has acquired Recipe Products Ltd. Founded in 2017, the company’s Curlsmith products are a category leader in the rapidly growing market for prestige haircare products for all types of curly and wavy hair. Curlsmith’s curl-loving range of conditioners, shampoos, and co-washes was created in partnership with expert trichologists and stylists specializing in healthy hair. Its formulas are purposefully designed for the unique joys and challenges of all types of curls and textured hair. The products are vegan friendly and cruelty free, and do not use sulfates, parabens, silicones, mineral oils, phthalates, or diethanolamine (DEA) in their formulation.\n\nThe total purchase consideration, net of cash acquired, was $150.0 million in cash, subject to certain customary closing adjustments. This implies a pre-synergy multiple of less than 10x estimated calendar year 2022 adjusted EBITDA1, which compares favorably to Helen of Troy’s current Enterprise Value (EV)2/TTM adjusted EBITDA3 multiple of approximately 15.0x. Calendar year 2022 net sales revenue is expected to be $40 - $42 million. Curlsmith immediately becomes the most profitable brand in Helen of Troy’s portfolio, further augmenting Beauty segment’s adjusted operating margin, which is already the highest in the Company. The acquisition is expected to be immediately accretive to consolidated and Beauty segment measures such as sales growth rate, gross profit margin, and adjusted EBITDA margin4, as well as consolidated measures such as adjusted diluted EPS5, adjusted diluted EPS growth rate, and cash flow from operations. The Company will discuss the ...