EL PASO, Texas, Sept. 26 /PRNewswire-FirstCall/ --
Helen of Troy Limited (Nasdaq: HELE), designer, developer and worldwide
marketer of brand name personal care products, today announced that it has
signed a definitive agreement to acquire directly and through license
agreements, six well known consumer brand names from The Procter & Gamble
Company (NYSE: PG).
Brands acquired directly include Condition 3-in-1(R), Final Net(R),
Vitalis(R), and Ammens(R). Brands acquired through license agreements include
Sea Breeze(R) and Vitapointe(R), subject to third party approval. A new
division will be created specifically to market these products which are
distributed primarily to the mass, drug, grocery and professional beauty
markets nationwide, with targeted distribution internationally. The Company
believes that combined sales of these brands are expected to be approximately
$45 million annually. The transaction will immediately boost sales and be
accretive to the Company's earnings per share next fiscal year, beginning
March 2003.
The purchase price will be paid in cash, but other terms of the
transaction were not disclosed. The transaction is scheduled to close within
ninety days. Cash used in this transaction will be provided from the
Company's current cash position.
Gerald J. Rubin, Helen of Troy's Chairman, Chief Executive Officer and
President, commenting on the acquisition of these new brands stated, "We are
very excited to add these brand names to our already impressive list of
brands. These lines possess strong brand heritage, established consumer
loyalty and we believe great potential for expansion. They will allow us to
compete in new product categories such as liquid hairstyling and hair care,
body powders, and face and skin care. We believe that by applying our proven
business and marketing strategies to these already successful brands we can
capitalize and expand upon their existing consumer appeal," Rubin concluded.
Helen of Troy Limited is a leading designer, producer and marketer of
brand name personal care consumer products. The Company's products include
hair dryers, curling irons, hair setters, women's shavers, brushes, combs,
hair accessories, home hair clippers, mirrors, foot baths, body massagers and
paraffin baths. The Company's products are sold by mass merchandisers, drug
chains, warehouse clubs and grocery stores under licensed trade names
including Vidal Sassoon, licensed from Procter & Gamble Co., the trademark
Revlon(R), licensed from Revlon Consumer Products Corporation, Dr.
Scholl's(R), licensed from Schering-Plough HealthCare Products, Inc., and
Sunbeam(R) licensed from Sunbeam Corporation. Helen of Troy's owned trade
names include Dazey(R), Caruso(R), Karina(R) and DCNL. The Company also
markets hair and beauty care products under the Helen of Troy(R), Hot
Tools(R), Hot Spa(R), Salon Edition(R), Gallery Series(R), Wigo(R) and
Ecstasy(R) trademarks to the professional beauty salon industry.
This press release may contain certain forward-looking statements, which
are subject to change. A number of risks or uncertainties could cause actual
results to differ materially from historical or anticipated results.
Generally, the words "anticipates," "believes," "expects" and other similar
words identify forward-looking statements. The Company cautions readers to
not place undue reliance on forward-looking statements. The actual results may
differ materially from those described in any forward-looking statements. The
Company intends its forward-looking statements to speak only as of the time of
such statements, and does not undertake to update or revise them as more
information becomes available. Additional information concerning potential
factors that could affect the company's financial results are included in the
company's Form 10-K for the year ended February 28, 2002.
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SOURCE Helen of Troy Limited
Web site: http: //www.hotus.com
Company News On-Call: http: //www.prnewswire.com/comp/132519.html
CONTACT: Robert D. Spear, Vice President and CIO of Helen of Troy Limited, +1-915-225-4748