Helen of Troy buys VMS supplier Healthy Directions for $195m

Personal care consumer products Helen of Troy has signed an agreement to acquire US-based vitamins, minerals and supplements (VMS) supplier Healthy Directions along with its subsidiaries for about $195m.

The acquisition of Healthy Directions will support Helen of Troy’s plan to enter into the VMS market segment and also increase its revenue by over 10% per year.

The transaction is also claimed to support Helen of Troy’s acquisitions of Kaz and PUR with Healthy Directions’ portfolio of supplements and health care products.

Helen of Troy Board Chairman Tim Meeker said: "We are delighted to announce the acquisition of Healthy Directions.

"Helen of Troy has significant balance sheet strength, which enables it to support its current brands and businesses, evaluate strategic acquisitions, and repurchase outstanding shares."

"We have been searching for the right acquisition for over two years and believe Healthy Directions is a strong fit for us both strategically and financially," Meeker added.

Helen of Troy chief executive officer Julien Mininberg said: "The heart of our acquisition strategy is to create value for our shareholders by adding growing businesses that are good strategic fits with our portfolio.

"Healthy Directions will add another strong pillar to our growing portfolio of market-leading health and wellness businesses that includes thermometers, humidifiers, vaporizers, air purifiers, and water purifiers."

Expected to complete during Helen of Troy’s second fiscal quarter, the transaction is subject to customary closing conditions as well as regulatory approval.

Healthy Directions chief executive officer Connie Hallquist said: "We admire the portfolio of businesses Helen of Troy has built, its consistent growth and profitability, and are eager to become a part of the Company.

"Our brands and products will benefit from greater access to capital, strong back office capability, a developed international platform, and other health and wellness businesses that may benefit from our business model over time."

Healthy Directions has reported a growth of 8.4% in 2013 compared to 2012 and also net sales of about $145m in calendar year 2013.