EL PASO, Texas--(BUSINESS WIRE)--Helen of Troy Limited (NASDAQ:HELE), designer, developer and worldwide marketer of consumer brand-name housewares, health and home, nutritional supplement and beauty products, today announced it has sold Healthy Directions LLC and subsidiaries, which make up its Nutritional Supplements segment, to Direct Digital LLC, a leader in the areas of product development and marketing within the health and wellness space. Healthy Directions is a leading provider of premier doctor-formulated nutritional supplements, products, and expert natural health guidance sold directly to consumers. The sale of Healthy Directions advances the Company’s strategy to focus its resources on its Leadership Brands. The Company’s Leadership Brands are among the highest volume, highest margin and most asset-efficient businesses at Helen of Troy.
Proceeds from the sale are comprised of $46 million in cash and a supplemental payment with a target value of $25 million, payable on or before August 1, 2019. The final amount of the supplemental payment may be adjusted up or down based on the performance of Healthy Directions through February 28, 2018. The transaction is also subject to customary working capital and other adjustments. Proceeds will be used to pay down debt, make accretive acquisitions or opportunistic share repurchases to create further shareholder value. The Company will further discuss the transaction during its third quarter fiscal 2018 earnings conference call, currently scheduled for January 8, 2017 at 9:00 a.m. Eastern.
Julien R. Mininberg, Chief Executive Officer, stated: “We are pleased to have entered into this transaction. We believe Healthy Directions and its highly dedicated staff will benefit from its new home with Direct Digital, a privately-held company focused on the vitamin, mineral and supplement market. We believe Direct Digital is well-positioned to take Healthy Directions to its next phase of growth. As we part ways with Healthy Directions, we thank the management and staff for all their efforts, and wish them well.”
Mr. Mininberg continued: “This transaction will strengthen the overall portfolio of Helen of Troy, and focus our resources toward our most attractive business prospects, including our seven Leadership Brands. These brands include Braun, Honeywell, PUR, Vicks, OXO, Hydro Flask and Hot Tools, all of which can fully leverage our shared services platform, strong balance sheet, and global presence as we continue to execute our strategic transformation plan. Our strategic plan also includes seeking further acquisition opportunities. The direct-to-consumer systems and fulfillment capability we have built for Healthy Directions will continue to be of value to Helen of Troy’s remaining portfolio. This will allow us to continue building on the investments and know-how in direct-to-consumer online sales, and the fulfillment efficiencies we have gained in our distribution center.”
Brandon Adcock, Co-founder and president of Direct Digital, LLC, said, “We are very excited about today’s announcement and welcome the collective talent and energy of the Healthy Directions team to the Direct Digital family. We are extremely pleased to add Healthy Directions to our health and wellness platform. Healthy Directions’ family of highly respected doctors and wellness experts will be a tremendous complement to our portfolio of nutritional brands. The Healthy Directions marketing platform will further strengthen Direct Digital’s omni channel strategy by adding robust, authoritative content, as well as market leading direct mail capabilities. We believe this combination, together with our distinctive entrepreneurial culture, lean operating structure, and efficient business model, will enable Direct Digital to continue to bring innovative and category leading nutritional supplements to market.”
Cantor Fitzgerald provided lead advisory services and Baker & McKenzie LLP served as legal counsel to Helen of Troy on the transaction. Deloitte Corporate Finance LLC acted as financial advisor and Davis & Gilbert LLP served as legal counsel to Direct Digital LLC on the transaction.
About Helen of Troy Limited:
Helen of Troy Limited (NASDAQ, NM: 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®, Febreze®, Revlon®, Pro Beauty Tools®, Sure®, Pert®, Infusium23®, Brut®, Ammens®, Hot Tools®, Bed Head®, Dr. Sinatra®, Dr. David Williams, and Dr. Whitaker®. All trademarks herein belong to Helen of Troy Limited (or its affiliates) and/or are used under license from their respective licensors.
For more information about Helen of Troy, please visit www.hotus.com.
About Direct Digital:
Direct Digital, LLC, is based in Charlotte, NC, and Boston, MA and is a leader in the areas of product development and marketing within the health and wellness space. Direct Digital owns the Nugenix®, Instaflex®, Peptiva™, Lumiday® and Luminite® brands, which are distributed throughout North America and internationally, direct-to-consumer and leading national retailers.
For additional information, please visit http://www.DirectDigitalllc.com.
