Helen of Troy Limited has officially finalized its previously announced acquisition of Olive & June, LLC, marking an exciting expansion in its Beauty portfolio.
“Helen of Troy Finalizes Acquisition of Olive & June, LLC,” said Noel M. Geoffroy, CEO of Helen of Troy. “We are very excited to complete the acquisition of Olive & June, which complements our existing Beauty portfolio, broadens us beyond the Hair category, and adds a consumables business that is both high growth and high margin. This is a great example of us executing our strategic goal of Continuing Better Together M&A. Olive & June continues to earn outstanding industry recognition, including recently being awarded Inc.’s 2024 Best In Business, Beauty Inc.’s Breakthrough Brand of the Year, Mass, and Glossy’s 2024 Beauty Brand of the Year. We look forward to working with Olive & June’s passionate associates and visionary leadership team to continue driving its award-winning product innovation and unique consumer engagement model that makes salon-quality home nail care accessible to everyone.”
Founded in 2013, Olive & June has grown into a leading omni-channel nail care brand, offering a comprehensive range of products that includes polish, artificial nails, tools, treatments, and care products. The brand has garnered a loyal following and industry accolades for its innovative approach to at-home nail care.
Helen of Troy Finalizes Acquisition of Olive & June, LLC will significantly bolster the company’s footprint in the beauty space, expanding its presence beyond hair care and into a high-growth, high-margin consumables sector. Helen of Troy is forecasting Olive & June’s 2024 net sales to reach approximately $92 million, with the acquisition expected to positively impact revenue growth, gross profit margin, adjusted EBITDA margin, and adjusted diluted EPS growth rate. Additionally, the acquisition is set to enhance free cash flow conversion immediately.
To fund the deal, Helen of Troy borrowed $235.0 million under its revolving Credit Agreement. The proceeds were used to pay the initial cash consideration of $229.4 million, net of cash acquired, with the remaining $15.0 million contingent on performance over the next three years.
As of December 16, including the borrowings for this acquisition, Helen of Troy has swapped $550.0 million of its floating-rate borrowings to a fixed SOFR rate of 3.9% through February 2026. At the time of the acquisition’s closing, the company’s pro forma net leverage ratio stood at three times.
Helen of Troy intends to update its fiscal 2025 outlook to include the impact of Olive & June in its third-quarter earnings release on January 9, 2025. This acquisition further positions Helen of Troy to achieve strong growth in the beauty and personal care sector.
