Expanding its housewares portfolio, Helen of Troy Limited has closed its previously-announced acquisition of Steel Technology, LLC., which does business under the brand name Hydro Flask, for approximately $210 million in cash.
Hydro Flask is a distributor and marketer of high performance insulated hydration vessels for active lifestyles. The Hydro Flask brand adds a fast growing brand that has built equity among outdoor and active lifestyle enthusiasts with a product lineup, innovation pipeline and margin profile that complements Helen of Troy’s housewares segment and extends its reach into the outdoor and athletic specialty, natural foods and e-commerce channels, the company stated.
Julien Mininberg, Helen of Troy CEO, said, “We are very pleased to complete the acquisition of Hydro Flask. Hydro Flask brings to Helen of Troy a great brand we believe is attractively positioned to continue delivering strong sales growth and profitability. Hydro Flask is immediately accretive to Helen of Troy and we believe we can add further value to it. With our strong cash flow, balance sheet and access to capital markets, we continue to evaluate opportunities to deploy capital, including assessment of additional strategic acquisitions or opportunistic share buyback.”
He continued, “Hydro Flask is a compelling strategic fit and the first acquired brand in our housewares segment since purchasing Oxo in 2004. The Hydro Flask team will continue to be based in Bend, OR, where we can preserve the qualities we admire. Hydro Flask will report into our housewares business, where they can leverage their proven expertise in product design and category development, as well as our own. We expect to add further value through Helen of Troy’s shared services, larger infrastructure, and international footprint. We believe we can capitalize on the compelling trends in Hydro Flask’s product category and adjacencies and create value for consumers, customers and our shareholders.”
For more on Helen of Troy’s Hydro Flask acquisition, see the upcoming March 28, 2016, issue of HOMEWORLD BUSINESS®.