Helen of Troy Limited is expanding its housewares segment, entering into a definitive purchase agreement to acquire the Hydro Flask hydration brand and all membership units of Steel Technology, LLC.
According to the company, the purchase price is expected to be approximately $210 million and is subject to certain customary closing conditions.
The Hydro Flask brand is a designer, 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.
“We are delighted to announce the acquisition of Hydro Flask, adding a well-respected and fast growing outdoor brand to our thriving housewares business,” said Helen of Troy CEO Julien Mininberg. “In less than five years, Hydro Flask has become a strong number two in hydration bottles in the outdoor and fitness channels. The business has more than quadrupled in size since the beginning of calendar year 2014, grew over 50% in calendar year 2015, and has been the key driver behind the majority of the growth of the category itself. Hydro Flask is led by a group of passionate end users who are highly skilled at developing the premium segment of their category and an authentic brand culture with high quality products that delight consumers.”
Hydro Flask’s team will remain in Bend, OR, according to the company.
Mininberg continued, “Our third acquisition in less than two years, this transaction marks Helen of Troy’s first new brand in its housewares segment since acquiring Oxo in 2004. Oxo has since tripled its revenues solely through organic growth and has established a track record of delivering strong margins.”
“Managing Hydro Flask within Helen of Troy’s housewares segment should allow us to leverage our proven expertise in innovation, product design and category development. We are very pleased to welcome the Hydro Flask management team to the Helen of Troy family, along with the strong partnership they have built with key outdoor channel retailers and major e-tailers, and the foundation for future growth they have created,” said Mininberg.