Supplier News Breaks Archives
Helen of Troy to buy Healthy Directions
June 11th, 2014
EL PASO, Texas – Helen of Troy Ltd. plans to acquire Healthy Directions LLC, a direct-to-consumer retailer of nutritional supplements and other health care products, for $195 million.
In announcing the cash deal Wednesday, Helen of Troy said it's "a logical step" for the company to enter the vitamins, minerals and supplements (VMS) category, given the burgeoning health and wellness trend among consumers. The purchase, too, builds on Helen of Troy's acquisitions of Kaz in December 2010 and PUR in December 2011.
Healthy Directions' supplements and health care products are branded with the names of highly respected physicians and nutritional experts in product segments such as heart health, digestive health, joint health, skin care and vision support. In addition, Healthy Directions' direct marketing and delivery capability encourage consumer education and automatic replenishment, Helen of Troy noted.
"Healthy Directions will add another strong pillar to our growing portfolio of market-leading health and wellness businesses that includes thermometers, humidifiers, vaporizers, air purifiers, and water purifiers. Healthy Directions is poised to continue capitalizing on the expected growth in its market. It has a substantial presence in the premium direct-to-consumer VMS category, a proven track record of growth over the past three years, and initiatives in place to continue its momentum," stated Julien Mininberg, Helen of Troy's chief executive officer.
"We also like Healthy Directions' direct-to-consumer business model, which drives growth by focusing on education, replenishment and customer loyalty with a wide range of high-quality products and programs designed to drive repeat purchases," Mininberg added. "Healthy Directions' direct-to-consumer marketing platform also provides a new capability at Helen of Troy, reaching consumers directly through the Internet, phone and direct mail, diversifying our go-to-market vehicles, as opposed to primarily brick-and-mortar retail and online retailers in our other businesses."
The acquisition is expected to close during Helen of Troy's fiscal second quarter, pending regulatory approval and other customary closing conditions. Healthy Directions had net sales of about $145 million in calendar year 2013 is expected to increase Helen of Troy's revenue by more than 10% on an annualized basis.
Helen of Troy's portfolio of consumer products covers a wide range of categories and brands, including licensed brands. Product segments include housewares (OXO, Good Grips, Soft Works, OXO tot and OXO Steel), health care and home environment (Vicks, Braun, Honeywell, PUR, Febreze, Stinger, Duracraft and SoftHeat) and personal care (Revlon, Vidal Sassoon, Dr. Scholl's, TONI&GUY, Sure, Pert, Infusium23, Brut, Ammens, Hot Tools, Bed Head, Karina, Sea Breeze and Gold 'N Hot).