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HELLO ORAL CARE ACQUIRED BY COLGATE-PALMOLIVE

Published January 29, 2020
Published January 29, 2020
Hello

Colgate-Palmolive is acquiring oral care disrupter Hello Products, a portfolio company of Tenth Avenue Holdings, a New York City-based private, diversified holding company.

WHO: Hello has a distinct “naturally friendly” lifestyle positioning with strong appeal among younger consumers and across broad segments. Hello’s products, which include adult and kids toothpaste, mouth rinse, toothbrushes, and floss, are sold only in the United States, primarily in food, drug, and mass retailers and through e-commerce.

Colgate-Palmolive is a leading global consumer products company, tightly focused on Oral Care, Personal Care, Home Care, and Pet Nutrition. Colgate sells its products in over 200 countries and territories around the world under internationally recognized brand names.

IN THEIR OWN WORDS: Noel Wallace, Colgate’s President and CEO, commented in a statement, “We are excited to welcome Hello to the Colgate family and are especially pleased that Craig and Lauri will continue in their leadership roles. We have great respect for the Hello team and their impressive product line, and value the strong connection they have made with younger consumers. With its distinct on-trend positioning, Hello is a terrific complement to our Colgate and Tom’s of Maine brands and we look forward to supporting its continued growth and success.”

Hello’s founder, Craig Dubitsky, said to NJ Biz, “We’re very fired up, we’re very lucky … [Colgate] is an incredible company. We’re just psyched about that. They’re the biggest oral care company in the world, in over 200 countries, and for a startup to be able to partner with the company like them with resources, reach and relevance, we’re over the moon.”

Hello’s CEO, Lauri Kien Kotcher, added, “Seeing how they have helped other companies grow and thrive in their portfolio, we are even more excited to join forces.”

DETAILS:

  • The transaction will be financed with a combination of cash and debt and is currently expected to close no later than February 2020.
  • Including transaction costs, the acquisition is expected to be flat to a penny dilutive to 2020 diluted earnings per share. The terms of the deal have not been disclosed.
  • The brand’s distribution currently includes retailers such as Target, Walmart, and Whole Foods. A rollout is planned for Ulta Beauty the first week of February, bringing distribution to 45,000 doors.
  • Forbes reported the brand was projected to exceed $20 million in sales in 2018. The brand is projected to have triple-digit growth by the end of 2020.
  • Hello will continue to be led by founder Craig Dubitsky and Lauri Kien Kotcher, Chief Executive Officer.
  • In 2006, Colgate acquired Hello’s competitor Tom’s of Maine for $100 million after the brand operated independently for 36 years.
  • Wachtell, Lipton, Rosen & Katz acted as legal advisors to Colgate-Palmolive on the transaction. Zukerman Gore Brandeis & Crossman acted as legal advisors to Hello Products on the transaction and Piper Sandler acted as financial advisors to Hello Products on the transaction.
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