EL PASO, Texas--(BUSINESS WIRE)--Helen of Troy Limited (NASDAQ: HELE), designer, developer and worldwide marketer of consumer brand-name housewares, health and home and beauty products, today announced the successful completion of its previously-announced acquisition of Drybar Products LLC, for approximately $255 million in cash, subject to certain customary closing adjustments. The purchase price implies a pre-synergy multiple of less than 13x estimated calendar year 2019 adjusted EBITDA1. 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 granted 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 salons will exclusively use, promote, and sell Drybar products globally.
Julien Mininberg, Helen of Troy CEO, commented: “We are very pleased to complete the acquisition of Drybar, which adds a highly-respected and fast-growing prestige brand to our Beauty business, and an 8th Leadership Brand to Helen of Troy’s portfolio. The acquisition aligns very well 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. We continue to expect Drybar to be immediately accretive to key financial measures for both our Beauty segment and Helen of Troy’s consolidated results, even before synergies. With our strong cash flow, low leverage, and access to capital at attractive rates, we continue to evaluate opportunities to deploy capital, including additional strategic acquisitions or opportunistic share repurchases.”
Mr. Mininberg continued: “We are delighted to welcome the Drybar Products team to our family. Drybar is a compelling strategic fit and we are pleased to add its prestige tier of hair appliances, liquids, and accessories to our highly-established Beauty business. We see excellent upside potential for growth in the product lineup, continued retail momentum and door expansion with key customers, and the expected expansion of the Drybar salon footprint both in the U.S. and internationally. We believe we can add further value through Helen of Troy’s shared services, larger infrastructure, and international footprint and create value for consumers, customers and our shareholders.”
Non-GAAP Financial Measures
The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in the United States of America (“GAAP”). To supplement its presentation, the Company discloses certain financial measures that may be considered non-GAAP financial measures, such as adjusted EBITDA.
- Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, non-cash asset impairment charges, restructuring charges, acquisition-related expenses, and non-cash share-based compensation.
About Helen of Troy Limited
Helen of Troy Limited (NASDAQ: HELE) is a leading global consumer products company offering creative solutions for its customers through a strong portfolio of well-recognized and widely-trusted brands, including OXO, Hydro Flask, Vicks, Braun, Honeywell, PUR, Hot Tools and Drybar. All trademarks herein belong to Helen of Troy Limited (or its affiliates) and/or are used under license from their respective licensors.
