Helen of Troy Limited announced it completed the acquisition of Olive & June, an omnichannel nail care brand that includes polish, artificial nails, tools, treatment and care.
In late November, Helen of Troy reported that it agreed to acquire Olive & June for a total purchase price of $240 million.
A principal amount of $235 million was borrowed on a revolving basis under Helen of Troy’s credit agreement in connection with the closing acquisition. The proceeds of the borrowing were used to pay the initial cash consideration of $229.4 million, net of cash acquired, which includes an estimated working capital adjustment and excludes the contingent cash consideration of up to $15 million, subject to performance over three years, the company stated. As of December 16, 2024, inclusive of the borrowings for the acquisition, the company has swapped an aggregate amount of $550 million of 56% of its outstanding floating rate borrowings to an average fixed SOFR rate of 3.9% through February 2026. Helen of Troy’s pro forma net leverage ratio is 3x at the time of closing.
Noel Geoffroy, Helen of Troy’s CEO, said, “We are very excited to complete the acquisition of Olive & June, which complements our existing Beauty portfolio, broadens us beyond the Hair category and adds a consumables business that is both high growth and high margin… Olive & June continues to earn outstanding industry recognition, including recently awarded Inc.’s 2024 Best In Business, Beauty Inc.’s Breakthrough Brand of the Year, Mass, and Glossy’s 2024 Beauty Brand of the Year. We look forward to working with Olive & June’s passionate associates and visionary leadership team to continue to drive its award-winning product innovation and unique consumer engagement model that makes salon-quality home nail care available to everyone.”
Helen of Troy develops beauty and hair care products under such brands as Revlon, Hot Tools, Belson and Bed Head. The company markets wellness products under such brands as PUR, Vicks, Honeywell and Braun; and housewares and outdoor products under such brands as Oxo, Hydro Flask and Osprey.
Helen of Troy expects Olive & June’s calendar year 2024 net sales revenue to be approximately $92 million and for the acquisition to be immediately accretive to Helen of Troy’s revenue growth rate, gross profit margin, adjusted EBITDA margin, adjusted diluted EPS growth rate and free cash flow conversion.
Helen of Troy intends to update its outlook for fiscal 2025 to include the incremental impact of Olive & June in conjunction with the third quarter earnings release on January 9, 2025.
