Chairman, CEO & President Gerald J. Rubin To Step Down Effective
Immediately To Serve as CEO of River Oaks Properties Ltd.; CFO Thomas J.
Benson To Serve As Interim CEO;
Independent Director Timothy F. Meeker Named Chairman
EL PASO, Texas--(BUSINESS WIRE)--Jan. 15, 2014--
Helen of Troy Limited (NASDAQ:HELE), designer, developer and worldwide
marketer of brand-name houseware, healthcare/home environment and
personal care consumer products, today announced that its Board of
Directors has appointed Julien R. Mininberg, 49, Chief Executive
Officer, effective March 1, 2014, the beginning of the Company’s new
fiscal year. Mr. Mininberg, who currently serves as Chief Executive
Officer and President of Helen of Troy’s Healthcare/Home Environment
segment (Kaz and PUR®), will succeed Gerald J. Rubin, 70, who is
stepping down as Chief Executive Officer and President of the Company
and resigning from the Board of Directors, effective immediately, to
serve as Chief Executive Officer of River Oaks Properties Ltd., one of
El Paso’s leading commercial real estate firms. Thomas J. Benson, Senior
Vice President and Chief Financial Officer, will serve as Interim Chief
Executive Officer until Mr. Mininberg assumes the CEO role.
The Board also announced that it has decided to separate the roles of
Chairman and Chief Executive Officer. Effective immediately, the Board
has appointed Timothy F. Meeker, an independent director, to succeed Mr.
Rubin as Chairman of the Board. The Board intends to nominate Mr.
Mininberg as a director to stand for election at the Company’s 2014
annual meeting.
Gary B. Abromovitz, Deputy Chairman and Lead Independent Director of
Helen of Troy, said, “The Board of Directors has been actively engaged
in ongoing succession planning and management development, and this
leadership change is designed to ensure a smooth transition and position
the Company for the future. For the past several years, Julien has
successfully led Helen of Troy’s largest business segment and brings
extensive marketing and management experience from his more than fifteen
years at Procter & Gamble. With a strong track record of building
market-leading multinational brands and organizations, operational
expertise, and excellent management skills, we firmly believe that
Julien is the ideal person to lead the Company going forward.”
Timothy F. Meeker said, “Tom Benson has been with Helen of Troy for ten
years and has an excellent knowledge of all aspects of the Company. As a
result, he is the perfect person to serve as interim CEO as we make this
transition.”
Mr. Abromovitz added, “On behalf of the Board, I want to thank Jerry for
his exceptional leadership and dedication over the past four decades.
Jerry has built this Company from the ground up – from a family business
to a multinational organization with a diverse portfolio of businesses
and revenues of nearly $1.3 billion in fiscal year 2013.”
Mr. Rubin said, “I am proud of the business we have created and honored
to have led such a talented team of nearly 1,500 employees around the
world. Together we have created a well-respected, world class global
consumer products company, with a market capitalization of nearly $1.7
billion, with strong momentum for continued success in serving our
consumers and retail partners. I am confident that I am leaving the
Company I co-founded in 1968 in a strong position to continue to grow
and prosper. Julien is a talented leader with demonstrated success in
building global businesses as well as fostering a winning culture. I
wish Julien all the best as he leads Helen of Troy, and continues the
great legacy of our Company.”
Mr. Mininberg said, "I am delighted and honored for the opportunity to
lead Helen of Troy. The Company has a strong presence in its core
markets and a talented organization. Each division has a portfolio of
businesses and brands that deliver results through a deep understanding
of their unique markets and can be leveraged as a platform for future
growth as we look to deliver value to our shareholders. I am confident
we have a bright future.”
The Board’s Compensation Committee, with the assistance of an
independent compensation consultant, has designed a compensation package
for Mr. Mininberg that it believes is closely aligned with the interests
of shareholders. In connection with the Company’s 2013 annual meeting,
the Compensation Committee engaged in discussions with shareholders to
gain input into its compensation plans and intends to engage with
shareholders regarding executive compensation going forward.
As a result of the CEO change, the Company expects to record a charge of
approximately $16.3 million (after giving effect to taxes), or $0.50 per
fully diluted share, in the fourth quarter of fiscal year 2014 ending
February 28, 2014, which reflects payments required under Mr. Rubin’s
employment agreement. The Company expects to realize net savings in CEO
compensation in fiscal year 2015 of approximately $30.0 million (after
giving effect to taxes), or $0.92 per fully diluted share, which is net
of the new CEO’s target compensation expense.
Julien Mininberg has been with Kaz since 2006, becoming President in
2007 and CEO in 2010. Under his leadership, Kaz has made successful
acquisitions, such as PUR® water filters, and secured new licenses for
world-class brands such as Febreze®. Before joining Kaz, Mr. Mininberg
spent 15 years at Procter & Gamble, where he spent four years in general
management and 11 in marketing. His P&G career was split evenly between
the United States and Latin America: in the U.S., he focused on
marketing as Brand Manager in P&G's Healthcare division; in Latin
America, he was Marketing Director for the company's cleaning products
division and later managed all of P&G’s business in Central America. Mr.
Mininberg earned his Bachelor's degree and MBA from Yale University.
About Helen of Troy Limited:
Helen of Troy Limited is a leading global consumer products company
offering creative solutions for its customers through a strong portfolio
of well-recognized and widely-trusted brands, including: Housewares:
OXO®, Good Grips®, Soft Works®, OXO tot® and OXO Steel®; Healthcare/Home
Environment: Vicks®, Braun®, Honeywell®, PUR®, Febreze®, Stinger®,
Duracraft® and SoftHeat®; and Personal Care: Revlon®, Vidal Sassoon®,
Dr. Scholl's®, Pro Beauty Tools®, Sure®, Pert®, Infusium23®, Brut®,
Ammens®, Hot Tools®, Bed Head®, Karina®, Ogilvie® and Gold 'N Hot®. The
Honeywell® trademark is used under license from Honeywell International
Inc. The Vicks®, Braun®, Febreze® and Vidal Sassoon® trademarks are used
under license from The Procter & Gamble Company. The Revlon® trademark
is used under license from Revlon Consumer Products Corporation. The Bed
Head® trademark is used under license from Unilever PLC. The Dr.
Scholl's® trademark is used under license from MSD Consumer Care, Inc.
For in-depth information about Helen of Troy, please visit www.hotus.com.
Forward Looking Statements:
This press release may contain forward-looking statements, which are
subject to change. The forward-looking statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Any or all of the forward-looking statements may turn out
to be wrong. They can be affected by inaccurate assumptions or by known
or unknown risks and uncertainties. Many of these factors will be
important in determining the Company's actual future results.
Consequently, no forward-looking statement can be guaranteed. Actual
future results may vary materially from those expressed or implied in
any forward-looking statements. The forward-looking statements are
qualified in their entirety by a number of risks that could cause actual
results to differ materially from historical or anticipated results.
Generally, the words "anticipates", "estimates", "believes", "expects",
"plans", "may", "will", "should", "seeks", "project", "predict",
"potential", "continue", "intends", and other similar words identify
forward-looking statements. The Company cautions readers not to place
undue reliance on 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. The forward-looking statements contained
in this press release should be read in conjunction with, and are
subject to and qualified by, the risks described in the Company's
Form 10-K for the year ended February 28, 2013 and in our other filings
with the SEC. Investors are urged to refer to the risk factors referred
to above for a description of these risks. Such risks include, among
others, the departure and recruitment of key personnel, the Company's
ability to deliver products to our customers in a timely manner, the
Company's geographic concentration of certain U.S. distribution
facilities, which increases our exposure to significant shipping
disruptions and added shipping and storage costs, difficulties
encountered during the transition to the Company’s new distribution
facility could interrupt the Company’s logistical systems and cause
shipping disruptions, the Company's projections of product demand,
sales, net income and earnings per share are highly subjective and our
future net sales revenue, net income and earnings per share could vary
in a material amount from such projections, expectations
regarding acquisitions and the integration of acquired businesses, the
Company's relationship with key customers and licensors, the costs of
complying with the business demands and requirements of large
sophisticated customers, the Company's dependence on foreign sources of
supply and foreign manufacturing, the impact of changing costs of raw
materials and energy on cost of goods sold and certain operating
expenses, circumstances that may contribute to future impairment of
goodwill, intangible or other long-lived assets, the risks associated
with the use of trademarks licensed from and to third parties, our
dependence on the strength of retail economies and vulnerabilities to an
economic downturn, the Company's ability to develop and introduce
innovative new products to meet changing consumer preferences,
disruptions in U.S., European and other international credit markets,
exchange rate risks, trade barriers, exchange controls, expropriations,
and other risks associated with foreign operations, the costs,
complexity and challenges of upgrading and managing our global
information systems, the risks associated with information security
breaches, the risks associated with tax audits and related disputes with
taxing authorities, potential changes in laws, including tax laws, and
the Company's ability to continue to avoid classification as a
controlled foreign corporation.
Source: Helen of Troy Limited
Helen of Troy Limited
John Boomer, 915-225-8050
Senior Vice
President
or
Investors:
ICR, Inc.
Allison
Malkin / Anne Rakunas
203-682-8200 / 310-954-1113