In a move to focus on its core home, housewares and beauty brands, Helen of Troy has sold Healthy Directions LLC and its subsidiaries, which make up the company’s nutritional supplements segment, to Direct Digital LLC.
Healthy Directions is a provider of doctor-formulated nutritional supplements, vitamins, products, and expert natural health guidance sold directly to consumers.
Proceeds from the sale are comprised of $46 million in cash and a supplemental payment with a target value of $25 million, payable on or before August 1, 2019. The final amount of the supplemental payment may be adjusted up or down based on the performance of Healthy Directions through February 28, 2018. Proceeds will be used to pay down debt, make accretive acquisitions or share repurchases to create further shareholder value, the company said.
Julien Mininberg, CEO, Helen of Troy, said, “We believe Healthy Directions will benefit from its new home with Direct Digital, a privately-held company focused on the vitamin, mineral and supplement market. This transaction will strengthen the overall portfolio of Helen of Troy, and focus our resources toward our most attractive business prospects, including our seven leadership brands. These brands include Braun, Honeywell, PUR, Vicks, Oxo, Hydro Flask and Hot Tools, all of which can fully leverage our shared services platform, strong balance sheet, and global presence as we continue to execute our strategic transformation plan. Our strategic plan also includes seeking further acquisition opportunities. The direct-to-consumer systems and fulfillment capability we have built for Healthy Directions will continue to be of value to Helen of Troy’s remaining portfolio. This will allow us to continue building on the investments and know-how in direct-to-consumer online sales, and the fulfillment efficiencies we have gained in our distribution center.”