Helen of Troy Limited, designer of consumer brand-name housewares, health and home, nutritional supplement and beauty products, closed its previously-announced acquisition of Steel Technology, LLC., which does business under the brand name Hydro Flask, for approximately $210 million in cash, subject to certain customary closing adjustments.
The purchase price implies a pre-synergy multiple of less than 12 times projected calendar year 2016 adjusted EBITDA.
Hydro Flask is a leading designer, distributor and marketer of high performance insulated hydration vessels for active lifestyles.
“We are very pleased to complete the acquisition of Hydro Flask. It aligns very well with our stated goals of deploying capital behind strategic, disciplined M&A for the benefit of our shareholders,” said Julien Mininberg, Helen of Troy CEO. “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.”
She added, “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, Oregon 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.”
Mininberg expressed that Hydro Flask will add value to Helen of Troy’s larger infrastructure and footprint, saying, “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.”
