Helen of Troy Limited announced on December 16, 2024, the successful completion of its acquisition of Olive & June, LLC. This strategic acquisition integrates an innovative, omni-channel nail care brand into Helen of Troy's existing Beauty portfolio, diversifying its offerings beyond the hair category and adding a high-growth, high-margin consumables business.
The total purchase consideration involved an initial cash payment of $229.4 million, net of cash acquired, which includes an estimated working capital adjustment. Additionally, there is a contingent cash consideration of up to $15.0 million, subject to Olive & June's performance over the next three calendar years. Helen of Troy funded the acquisition by borrowing $235.0 million on a revolving basis under its existing credit agreement.
The acquisition is expected 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. Following the acquisition, Helen of Troy's pro forma net leverage ratio stands at 3x. The company also noted that it has swapped an aggregate of $550.0 million, or 56.0% of its outstanding floating rate borrowings, to an average fixed SOFR rate of 3.9% through February 2026.
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