Helen of Troy Limited announced on November 21, 2024, that it has entered into a definitive merger agreement to acquire Olive & June, LLC, an innovative omni-channel nail care brand. The acquisition is valued at a total purchase consideration of $225 million in cash at closing, subject to customary adjustments, with an additional $15 million earnout contingent on performance over three years. This strategic move aims to expand Helen of Troy's Beauty portfolio beyond the hair category.
Olive & June, founded in 2013, operates across all nail care categories, including polish, artificial, tools, treatment, and care, offering a salon-quality experience for at-home use. The brand's consumer solutions-driven product innovation and digital-first model have fostered strong brand loyalty and social media engagement. Helen of Troy expects Olive & June's calendar year 2024 net sales revenue to be approximately $92 million.
The acquisition is anticipated to be immediately accretive to Helen of Troy’s revenue growth rate, gross profit margin, adjusted EBITDA margin, adjusted diluted EPS growth rate, and free cash flow conversion. The company expects its pro forma net leverage ratio to be 3x or less at the estimated time of closing. Helen of Troy also executed interest rate swaps on an additional $250 million of variable rate debt in September 2024, fixing the interest rate at an average SOFR rate of 3.7% for 18 months, with approximately 71% of total debt fixed at 3.9% through February 2026 as of November 20, 2024.
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