Helen of Troy—a designer, developer, and worldwide marketer of branded consumer home, outdoor, beauty, and wellness products—announced that it has entered into a definitive merger agreement to buy Olive & June’s business.
Founded in 2013, Olive & June is an innovative omnichannel nail care brand trailblazing the DIY nail revolution. Within the multi-billion-dollar beauty industry, Olive & June plays across all nail care categories: polish, artificial, tools, treatment, and care, delivering a salon-quality experience at home. Plus, its consumer solutions-driven product innovation and digital-first model to engage and educate consumers drive brand loyalty and social media engagement well above the category averages.
The Olive & June acquisition is a complementary fit with Helen of Troy’s strategic goal of Continuing Better Together M&A. Helen of Troy believes it can add value to Olive & June and utilize its scalable operating platform, while Olive & June can accelerate profitable growth for Helen of Troy by helping to diversify its product offerings further. And as the company continues to focus on elevating the health and performance of its core brand portfolio, it intends for Olive & June to operate in a stand-alone but supported model, with the brand continuing to operate largely as it is operated today except in areas where the Company believes it can accelerate Olive & June’s momentum.
This total purchase consideration is expected to be $225 million in cash at closing, subject to certain customary closing adjustments, and a $15 million earnout subject to performance over three years. And the total purchase price implies a multiple of less than 11x estimated calendar year 2025 adjusted EBITDA before synergies, which compares favorably to the Company’s recent transactions. The Company expects Olive & June’s 2024 net sales revenue to be approximately $92 million.
The deal is expected to accretive to Helen of Troy’s revenue growth rate, gross profit margin, adjusted EBITDA margin, adjusted diluted EPS growth rate, and free cash flow conversion immediately.
The acquisition is expected to close before the end of the calendar year in 2024, subject to customary closing conditions, including regulatory approvals.
KEY QUOTES:
“We could not be more excited to add Olive & June to our portfolio of leading brands and we welcome its passionate associates and visionary leadership team to the Helen of Troy family. We believe Olive & June is an excellent fit with Helen of Troy both strategically and financially. Olive & June’s innovation-driven performance, highly relevant vision of democratizing nail care for everyone, award-winning products and unique consumer engagement model are impressive and inspiring. We see significant opportunities to build on its strengths in consumer obsession and breakthrough commercial and product innovation, in addition to helping expand the brand’s availability with increased distribution. Olive & June complements our existing Beauty portfolio and broadens us beyond the Hair category, adding a consumables business that is both high growth and high margin. We look forward to working together to fully realize the potential of Olive & June.”
– Noel M. Geoffroy, Helen of Troy Chief Executive Officer
“When I started Olive & June, the mission was simple: to make salon-quality nails accessible to everyone, everywhere. Thanks to our passionate team and loyal community, we have achieved incredible milestones—teaching millions how to do their nails at home and redefining what is possible in Beauty. Now, as we join the Helen of Troy family, a company known for elevating everyday experiences with innovative consumer products, I could not be more thrilled to lead this next chapter of growth for the brand. I have been deeply impressed by Noel’s visionary leadership and look forward to partnering with her and the entire Helen of Troy team. Together, we will continue to innovate, inspire, and deliver on our promise to be the go-to at-home nail solution for everyone, everywhere. I cannot wait to see all that we will accomplish together.”
– Sarah Gibson Tuttle, founder and CEO of Olive & June
