Helen of Troy selling Healthy Directions division
Helen of Troy will be selling its direct-to-consumer nutritional supplements and health guidance segment Healthy Directions. The El Paso, Texas-based company will be divesting the division to privately held VMS company Direct Digital for roughly $46 million in cash and a supplemental payment with a target value of $25 million that will come on or before Aug. 1, 2019, Helen of Troy said.
Helen of Troy CEO Julien Mininberg said that the sale was aimed at focusing the company’s portfolio on its leadership brands — Braun, Honeywell, PUR, Vicks, OCO, Hydro Flask and Hot Tools — as part of its strategic transformation. He noted that the company would also be looking for future acquisition opportunities as part of the plan.
“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,” Mininberg said. “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.”
Helen of Troy will use the proceeds from the sale to pay down its debt, make acquisitions or repurchase shares, the company said.
“We are extremely pleased to add Healthy Directions to our health and wellness platform. Healthy Directions’ family of highly respected doctors and wellness experts will be a tremendous complement to our portfolio of nutritional brands,” Direct Digital co-founder and president Brandon Adcock said. “The Healthy Directions marketing platform will further strengthen Direct Digital’s omnichannel strategy by adding robust, authoritative content, as well as market leading direct mail capabilities. We believe this combination, together with our distinctive entrepreneurial culture, lean operating structure, and efficient business model, will enable Direct Digital to continue to bring innovative and category leading nutritional supplements to market.”
Helen of Troy CEO Julien Mininberg said that the sale was aimed at focusing the company’s portfolio on its leadership brands — Braun, Honeywell, PUR, Vicks, OCO, Hydro Flask and Hot Tools — as part of its strategic transformation. He noted that the company would also be looking for future acquisition opportunities as part of the plan.
“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,” Mininberg said. “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.”
Helen of Troy will use the proceeds from the sale to pay down its debt, make acquisitions or repurchase shares, the company said.
“We are extremely pleased to add Healthy Directions to our health and wellness platform. Healthy Directions’ family of highly respected doctors and wellness experts will be a tremendous complement to our portfolio of nutritional brands,” Direct Digital co-founder and president Brandon Adcock said. “The Healthy Directions marketing platform will further strengthen Direct Digital’s omnichannel strategy by adding robust, authoritative content, as well as market leading direct mail capabilities. We believe this combination, together with our distinctive entrepreneurial culture, lean operating structure, and efficient business model, will enable Direct Digital to continue to bring innovative and category leading nutritional supplements to market.”