Helen of Troy is thinking really long term with Revlon, paying $72.5 million in cash — with no ongoing royalties — to use the brand for hair-care appliances and tools for the next 100 years.
“Revlon has been an important brand in Helen of Troy’s Beauty portfolio since 1992,” said Julien Mininberg, chief executive officer of the El Paso-based consumer company. “As part of Helen of Troy’s overall transformation, our global hair appliance business has more than doubled in recent years and made significant gains in profitability and market share. Our Revlon products have led the way in the United States, Canada, Europe, and Latin America. Outstanding innovation has been a key driver in delighting consumers and winning awards around the world. Our strong portfolio of beauty brands is now the market share leader online in the U.S. hair appliance category, a share leader in several of the largest U.S. brick-and-mortar customers, and growing rapidly in all major channels.”
The ultra-long term license initially lasts through 2060 and has three 20-year auto renewal periods and implies a multiple of fewer than nine-times estimated fiscal after-tax flows, according to Helen of Troy, which expects to pay for the deal with cash on hand.
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“We preserved global rights to the brand in all the same categories and channels as before, with favorable terms and compelling economics,” Mininberg said. “In addition to our owned brands of Hot Tools, Drybar, and Gold ‘N Hot, further expanding Revlon plays a critical role in our overall good/better/best strategy for continued growth in global hair appliances. We would like to thank Revlon Inc. for their continued faith in Helen of Troy and in our stewardship of the Revlon brand.”
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