Helen of Troy Ltd. is buying the Drybar hair-care business, Drybar Products LLC, for $255 million in cash.
The products business, which includes shampoos, conditioners, tools and styling products, started after Drybar blowout salons, founded by Alli Webb in 2010, took off. The brand is sold inside Drybar studios, as well as at Ulta Beauty and Sephora.
Drybar products are expected to do between $64 million and $66 million in net sales for 2019, a growth rate of more than 15 percent. Sales are split fairly evenly between appliances and liquid products, the company said, and about 80 percent of sales come from retail partners, with 20 percent of sales coming from Drybar salons. The deal is expected to close by Jan. 31.
As part of the transaction, Helen of Troy will grant a worldwide license to Drybar Holdings LLC, the part of the business that operates the blowout salons, to use the Drybar trademark and continue running and expanding those outposts. Drybar has a plan to double the salon footprint over the next five years, to about 280, and expand internationally, executives said on a call Thursday.
“Drybar products are winning in the prestige category with premium appliances, liquids and accessories that resonate with a wealthier, on-trend consumer demographic for use at home and by stylists. The business has more than doubled in size since 2016 and continues to grow at a healthy double-digit rate across a wide array of retailers including Ulta, Sephora, Nordstrom’s, Macy’s — and Drybar salons,” said Julien Mininberg, chief executive officer of Helen of Troy.
Helen of Troy also owns Revlon tools and Hot Tools products, and said Drybar can benefit from its expertise in innovative appliances, sales, marketing and international. “Additionally, once we complete the necessary integration activities, we expect to add further value to the business and achieve meaningful synergies by leveraging Helen of Troy’s highly capable shared services through our global sourcing, distribution and back-office capabilities,” Mininberg said. “Our beauty organization has been significantly upgraded and we are bringing highly innovative products to market in the U.S. and internationally, generating strong results. Drybar will add a multicategory leader to our portfolio in prestige hair care, that will complement our Revlon and Hock Tools brands and extend Helen of Troy beauty across the good, better and now best segments,” Mininberg said.
Drybar’s ceo, John Heffner, will join Helen of Troy.
Drybar has been backed by Castanea Partners since 2012, when the private equity firm invested $16 million. In 2016, Roark Capital, a private equity firm with franchising expertise, also invested in the business.
Financo advised Drybar on the deal.
Prestige hair care — the fastest-growing category in U.S. beauty — has attracted a handful of deals recently. In November, Advent International bought Olaplex in a deal said to be valued at north of $1 billion. Before that, Henkel came to an agreement to buy DevaCurl, a hair-care brand centered around curls and waves.
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