Helen of Troy Ltd. has announced that, through its subsidiaries, it has acquired the Vicks VapoSteam U.S. liquid inhalant business from the Procter & Gamble Company. The purchase includes a “fully paid-up” license to the Vicks VapoSteam trademarks. The purchase price was not disclosed.
In a related transaction, the company has also acquired a “fully paid-up” license of P&G’s Vicks VapoPad trademarks for scent pads in the U.S. The vast majority of Vicks VapoSteam and VapoPads are used in Vicks humidifiers, vaporizers and other health care devices already marketed by Helen of Troy. The company’s Kaz division has manufactured and marketed the licensed Vicks humidifier and related accessories line.
The transaction also includes the acquisition of certain production assets and the inventory related to the above categories, as well as the right to use related intellectual property. The VapoSteam acquisition is expected to be financed with the company’s revolving credit facility. The U.S. Vicks VapoSteam business associated with the transaction had annual revenues of approximately $10 million in calendar year 2014, according to the company.
Julien Mininberg, Helen of Troy CEO, stated, “Acquiring the U.S. rights to Vicks VapoSteam makes us a leading player in the inhalant category. Adding VapoSteam to our existing VapoPads inhalant further strengthens our U.S. humidifier and vaporizer business, with consumable refills in both the liquid and pad form that deliver the distinctive Vicks scent and relief consumers love. By combining the businesses of devices and consumables, we are now able to give inhalants greater marketing focus and to invest in additional new product development. With excellent historical gross margins above our company average, these transactions are expected to further enhance the profitability of our health care/home environment segment, add incremental cash flow to Helen of Troy at an attractive valuation, and be accretive in fiscal year 2016. We are also delighted to deepen our long-term partnership with P&G.”
The acquisition further adds to Helen of Troy’s consumables portfolio. Last year, the company acquired Healthy Directions, a U.S. retailer of premium doctor-branded vitamins, minerals and supplements, as well as other health products sold directly to consumers.