Helen of Troy Limited , designer, developer and worldwide marketer of consumer brand-name home, outdoor, health, wellness, and beauty products, announced that one of its subsidiaries has acquired Recipe Products Ltd. Founded in 2017, the company’s Curlsmith products are a category leader in the rapidly growing market for prestige haircare products for all types of curly and wavy hair. Curlsmith’s curl-loving range of conditioners, shampoos, and co-washes was created in partnership with expert trichologists and stylists specializing in healthy hair. Its formulas are purposefully designed for the unique joys and challenges of all types of curls and textured hair. The products are vegan friendly and cruelty free, and do not use sulphates, parabens, silicones, mineral oils, phthalates, or diethanolamine (DEA) in their formulation.
About Curlsmith ?
The brand started as an online community, offering specialist content and providing a space for sharing tips, tricks and tutorials for managing textured hair. In response to the unmet needs of its curly followers, Curlsmith launched its own product line, calling on its community to co-create the range.
Today, Curlsmith is sold across specialty retailers such as Ulta Beauty, and Curlsmith.com with notable strength in the US and Europe. The brand has seen impressive revenue growth having more than doubled in size in each of the past two years. While originally targeted to the textured and curly hair care market, which comprises 60 percent of the population, the brand now makes products that benefit all hair and skin types, with clean ingredients backed by science.
About Helen of Troy Limited ?
Helen of Troy Limited is a leading global consumer products company offering creative products and solutions for its customers through a diversified portfolio of well-recognized and widely-trusted brands, including OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools and Drybar. The Company sometimes refers to these brands as its Leadership Brands. All trademarks herein belong to Helen of Troy Limited (or its subsidiaries) and/or are used under license from their respective licensors.
The total purchase consideration, net of cash acquired, was £150 million in cash, subject to certain customary closing adjustments. This implies a pre-synergy multiple of less than 10x estimated calendar year 2022 adjusted EBITDA, which compares favourably to Helen of Troy’s current Enterprise Value (EV)/TTM adjusted EBITDA multiple of approximately 15.0x. Curlsmith immediately becomes the most profitable brand in Helen of Troy’s portfolio, further augmenting Beauty segment’s adjusted operating margin, which is already the highest in the Company. Financo – Raymond James, The Consumer Investment Banking Team acted as exclusive financial advisor to Curlsmith.
In a statement underscoring Helen of Troy’s strategy to invest in businesses that can accelerate profitable growth, CEO Julien R. Mininberg, says, “We believe Curlsmith is an excellent fit with Helen of Troy, both strategically and financially. This transaction advances Helen of Troy’s strategy to invest in businesses that can accelerate profitable growth in categories where we can add value and leverage our scalable operating platform. It aligns with a key Phase II M&A objective of tucking in early stage, fast growing, and disruptive innovators to complement our portfolio of Leadership Brands. Curlsmith expands our platform in prestige beauty to capitalize on the fast-growing textured hair market. Approximately 60% of U.S. consumers have curly or textured hair.”
Curlsmith CEO Michal Berski, who founded the brand in 2017, says, “If you look at the portfolio of brands that Helen of Troy owns, all these brands are leaders within their categories and same thing with Curlsmith. We are the No. 1 textured haircare brand in the U.S. So, it’s an obvious choice for Helen of Troy. We are leading that space within Ulta, too, and it just feels like the beginning for us. We have been working just with Ulta, but we are open-minded. We are looking to grow the brand.”
Berski is departing Curlsmith and taking a break as the remainder of the brand’s team reportedly stays in place. He’s doesn’t think he’ll be out of the beauty industry forever. Prior to Curlsmith and L’Oréal, Berski occupied roles at Unilever and Procter & Gamble. “I can’t tell you exactly what I am going to do next when I’m done with my break, but I love beauty,” he says. “It’s all I know and all I’m passionate about.”
