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.”
A Revlon spokesperson said: “We are pleased to be extending our partnership with Helen of Troy, which has proven to be mutually beneficial. This agreement speaks to the strength of the Revlon brand and our product portfolio and we look forward to continuing to reach customers through this important channel.”
The transaction secures the business for Helen of Troy and brings a nice cash infusion to Revlon, which found itself on the cusp of bankruptcy this fall before reaching an agreement with lenders.
But it also conjures up the image of just what the world will look like in 2120.
Technology and manufacturing giant Honeywell recently looked a century ahead and projected:
• That flights without pilots would be commonplace.
• That buildings will anticipate their occupants’ needs, automatically adjusting lighting, temperature and security.
• A much larger space exploration industry.
• A quantum-computing revolution in chemistry and materials science and beyond.
And, although Honeywell didn’t predict it, Mininberg’s successor many times over at Helen of Troy is now set to be cranking out Revlon-branded hair-care tools — still.
Maybe they’ll be quantum-powered.
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