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Helen of Troy to possibly wash off personal care division
Posted on Tuesday, 12 March 2019 15:29
Helen of Troy is considering a sale of its personal care business, a division within its beauty segment, as it looks to focus on core brands within its company.
The news follows a report yesterday from the Wall Street Journal in which sources stated a possible disposal of the target could be worth around USD 300.00 million.
Helen of Troy’s personal care segment comprises brands such as men’s shampoo Pert, cosmetics and skin care company Revlon, as well as deodorant and antiperspirant business Sure, among others.
A possible sale would allow the US-based vendor to concentrate on high-selling products including, Braun, Honeywell, PUR, Vicks, Hot Tools, OXO and Hydro Flask.
Julien Mininberg, chief executive of the company, said: “We believe our well-established strategy positions Helen of Troy for continued and further long-term sales and profit growth.
“That strategy centres on driving further improvements across our current businesses, our geographic footprint, our global shared services, and the overall strength of our organisation, while pursuing additions to our leadership brand portfolio through acquisition.”
For the nine months ended 30th November 2018, Helen of Troy posted revenue of USD 1.18 billion, up from USD 1.09 billion in the corresponding period of 2017.
A sale of the personal care segment would follow in the footsteps of Switzerland’s food and drink giant Nestle, which decided to spin off its skin care business in September 2018.
Helen of Troy is also no stranger to divesting parts of its company, having sold nutritional supplements segment, Healthy Directions, to Direct Digital for USD 71.00 million in December 2017.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 51 deals targeting cosmetics, beauty supplies and perfume stores operators announced worldwide since the beginning of 2018.
In the largest of these, the Honest Company, founded by actress Jessica Alba, raised USD 200.00 million via a private round of funding from L Catterton in June 2018.
Other targets included Pacific Beauty, Groove Collaborative, Clicks Group and Memebox, among others.
© Zephus Ltd