Helen of Troy announces divestiture of mass market personal care business

EL PASO, Texas – () – Helen of Troy Limited (NASDAQ: HELE), a designer, developer and global distributor of consumer branded housewares, health and home products and beauty products, today announced that it has sold its business of personal care products in the mass market, excluding Latin America and the Caribbean, to HRB Brands LLC, a privately held company that is one of the largest independent branded personal care companies in North America for 44 , $ 7 million in cash. The transaction also includes an option that gives HRB Brands LLC the right to purchase the personal care business in Latin America and the Caribbean no later than the end of fiscal 2022, subject to certain agreed conditions being met. The sale proceeds announced today represent substantially all of the negotiated value for all of the global personal care business.

The Company plans to use the proceeds to create further shareholder value in line with Helen of Troy’s capital allocation strategy, including debt repayment, making accretive acquisitions of additional leadership brands that better align with the long-term growth strategies of the Company’s portfolio. , or engage in opportunistic share buybacks. The Company will discuss the transaction during its first quarter fiscal 2022 results conference call, scheduled to take place in early July 2021.

Julien R. Mininberg, Chief Executive Officer, said: “We are excited about this opportunity for HRB Brands LLC, a company that we believe is well positioned to take the personal care business into its next phase of growth. . The Personal Care portfolio includes iconic brands such as Brut, Pert Plus, Sure, Infusium and Vitalis.

Mr. Mininberg continued, “This transaction advances Helen of Troy’s strategy of focusing resources on its growing portfolio of eight leadership brands. These are OXO, Hydro Flask, Vicks, Braun, PUR, Honeywell, Drybar and HOT Tools, all of which take advantage of our shared services platform, generate strong flows cash flow and provide a global presence we can build on while continuing to execute our strategic transformation plans. Our leading brands are among our highest volume and highest margin brands, which together accounted for over 80% of global sales in fiscal 2021. In our Beauty segment, we continue to focus on accelerated growth in our global premium appliances and liquids business under the Revlon, Drybar and HOT Tools brands. We expect this divestiture to help us accelerate our high and low growth rates and allow us to redeploy capital in line with Helen of Troy’s capital allocation strategy.

Jim Daniels, CEO of HRB Brands LLC, said, “We are very pleased with today’s announcement to expand our line of trusted brands. We are extremely excited to add these respected and well-known brands with enduring equity capital that primarily compete in the hair care, deodorant and fragrance categories. We believe that this combination, along with our distinctive entrepreneurial culture, lean operating structure and efficient business model, will allow HRB Brands LLC to continue to bring innovative and cutting-edge innovations to market.

Cantor Fitzgerald provided principal advisory services and Baker & McKenzie LLP acted as legal counsel to Helen of Troy in connection with the transaction. Gibson Dunn acted as legal counsel to HRB Brands LLC in connection with the transaction.

About Helen of Troy Limited

Helen of Troy Limited (NASDAQ: HELE) is a leading global consumer products company providing creative solutions to 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. We sometimes call these brands our leadership marks. All trademarks registered herein are owned by Helen of Troy Limited (or its affiliates) and / or are used under license from their respective licensors.

For more information on Helen of Troy, please visit http://investor.helenoftroy.com/

About HRB Brands LLC:

HRB Brands LLC is a holding company of Tengram Capital Partners, a private equity firm whose investment strategy is based on leading mid-market consumer companies that have recognized brands such as ZEST®, V05®, COAST® , SGX NYC®, THICKER FULLER HAIR®, LA LOOKS® and others.

For more information on HRB Brands LLC, please visit https://www.highridgebrands.com/

Forward-looking statements

Certain written and oral statements made by the Company and its subsidiaries may constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. This includes statements made in this press release. As a general rule, the words “anticipates”, “believes”, “expects”, “plans”, “could”, “will”, “should”, “research”, “estimate”, “plan”, ” , “Continue”, “intends” and other similar words identify forward-looking statements. All statements that deal with the results of operations, events or developments that the Company expects or anticipates to occur in the future, including statements relating to sales, earnings per share and statements expressing general expectations regarding future operating results, are forward-looking statements and are based on current expectations and various assumptions. The Company believes that there is a reasonable basis for these expectations and assumptions, but there can be no assurance that the Company will achieve these expectations or that these assumptions will prove to be correct. Forward-looking statements are subject to risks which could cause them to differ materially from actual results. Therefore, the Company cautions readers not to place undue reliance on forward-looking statements. The forward-looking statements contained in this press release should be read in conjunction with, and are subject to and qualified by, the risks described in the Company’s Form 10-K for the fiscal year ended February 28, 2021, and in the other documents. deposited by the Company. with the SEC. Investors are invited to refer to the risk factors mentioned above for a description of these risks. These risks include, among others, the Company’s ability to successfully manage demand, supply and operational challenges associated with the real or perceived effects of COVID-19 and any future public health crisis, pandemic or similar epidemic, the Company’s ability to deliver products to its customers on a timely basis and in accordance with their performance standards, actions taken by large customers that may have a negative impact on the gross profit and operating results of the Company, the Company’s dependence on strong retail economies and vulnerabilities to any prolonged economic downturn, including the effects of COVID-19, the Company’s dependence on sales to several large customers and the risks associated with any loss or substantial decline in sales to major customers, expectations regarding recent acquisitions and any future acquisitions or disposals, including the Company’s ability to achieve the associated synergies as well as its ability to effectively integrate acquired businesses in red or disaggregated divested businesses, the Company’s dependence on its CEO and a limited number of other key senior executives to operate its operations, obsolescence or interruptions in the operation of the Company’s central global enterprise resource planning (“ERP”) systems and other peripheral information systems, the occurrence of cyber incidents or failure of the Company, or of its third-party service providers to maintain cybersecurity and the integrity of internal or customer confidential data, the Company’s reliance on third-party manufacturers, most of which are located in the Far East, and any inability to obtain products from these manufacturers, the risks associated with weather conditions, the length and severity of the cold and flu season and other related factors, the geographic concentration and peak season capacity of certain US distribution facilities which increase its risk to disruptions that could affect the Company’s ability to deliver products in a timely manner, the risks associated with the use of trademarks licensed from or to third parties, the Company’s ability to develop and introduce a continuous stream of innovative new products to meet changing consumer preferences, risks associated with trade barriers, exchange controls, expropriations, and other risks associated with domestic and foreign operations, risks associated with material changes in regulations, interpretations or product certification requirements, risks associated with global legal developments regarding data privacy and security that could result in changes in its commercial practices the, penalties, increase in operating costs, or adversely affect the business in any way, the risks associated with the recognition of tax positions and the resolution of tax disputes, the risks of potential changes in laws and regulations, including environmental, health and safety and tax laws, and the costs and complexities of complying with these laws, the Company’s ability to avoid classification as a controlled foreign company, risks associated with legislation enacted in Bermuda and Barbados in response to the European Union’s review of harmful tax competition, risks of significant tariffs or other restrictions imposed on imports from China or Mexico or any other retaliatory trade actions taken by China or Mexico, risks associated with product recalls, product liability and other claims against the Company, and the associated financial risks, including, but not limited to, significant impairment of the Company’s goodwill, indefinite-lived and finite-lived intangible assets or other long-lived assets, risks associated with fluctuations in exchange rates, increased costs of raw materials, energy and transportation, projections of product demand, sales and net profit, which are highly subjective in nature, and from which sales and net income could vary by a material amount, risks to the Company’s liquidity or costs of capital which may be significantly affected by constraints or changes in the capital and credit markets and by the limitations of its financing arrangements. The Company assumes no obligation to publicly update or revise forward-looking statements as a result of new information, future events or otherwise.

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