Helen Of Troy To Acquire Healthy Directions

Helen of Troy Limited has entered into a definitive purchase agreement to acquire Healthy Directions, LLC and its subsidiaries (Healthy Directions), a U.S. retailer of premium doctor-branded vitamins, minerals and supplements (VMS), as well as other health products sold directly to consumers. The purchase price will be approximately $195 million in cash, subject to certain customary closing adjustments. The sellers are certain funds controlled by American Securities, LLC and ACI Capital Co., LLC. Following the closing of the acquisition, Healthy Directions will continue to be based in Bethesda, Maryland.

With net sales of approximately $145 million in calendar year 2013, Healthy Directions is expected to increase Helen of Troy’s revenues by more than 10% on an annualized basis. Healthy Directions grew 8.4% in 2013 compared to 2012, ahead of the industry trend in the VMS market, according to the company.

Entering the VMS category is a logical step for Helen of Troy as it continues to capitalize on the health and wellness trend, which builds on Helen of Troy’s acquisitions of Kaz in December of 2010 and PUR in December of 2011, noted the company. Healthy Directions’ portfolio of supplements and health care products is branded with the names of physicians and nutritional experts in product segments such as heart health, digestive health, joint health, skin care, and vision support. It has a strong, innovation pipeline and an advantageous direct marketing and delivery capability, which encourages consumer education and automatic replenishment. Healthy Directions targets consumers aged 55-plus.

Julien Mininberg, Helen of Troy CEO, stated: “The heart of our acquisition strategy is to create value for our shareholders by adding growing businesses that are good strategic fits with our portfolio. 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. 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. 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 transaction is expected to close during Helen of Troy’s second fiscal quarter, subject to customary closing conditions, including regulatory approval.


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