Helen of Troy announced an agreement to extend the Revlon license for haircare appliances and tools, providing a fully paid-up 100-year exclusive global license.

WHO: 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 OXO, Hydro Flask, Vicks, Braun, Honeywell, PUR, Hot Tools, and Drybar.

WHY: The transaction secures the business for Helen of Troy and brings an infusion of cash to Revlon, who was on the verge of bankruptcy this fall before reaching an agreement with lenders.

IN THEIR OWN WORDS: Julien R. Mininberg, Chief Executive Officer, stated: “Revlon has been an important brand in Helen of Troy’s Beauty portfolio since 1992. As part of Helen of Troy’s overall transformation, our global hair appliance business has more than doubled in recent years and made significant gains in profitability and market share. Our Revlon products have led the way in the United States, Canada, Europe, and Latin America. Outstanding innovation has been a key driver in delighting consumers and winning awards around the world. Our strong portfolio of Beauty brands is now the market share leader online in the U.S. hair appliance category, a share leader in several of the largest U.S. brick & mortar customers, and growing rapidly in all major channels.

“The fully paid up 100-year Revlon License we are announcing today is a major step forward in Helen of Troy’s plan to continue strengthening and growing its Beauty business. We preserved global rights to the brand in all the same categories and channels as before, with favorable terms and compelling economics. In addition to our owned brands of Hot Tools, Drybar, and Gold ‘N Hot, further expanding Revlon plays a critical role in our overall Good/Better/Best strategy for continued growth in global hair appliances. We would like to thank Revlon Inc. for their continued faith in Helen of Troy and in our stewardship of the Revlon brand.”

DETAILS:

• Helen of Troy Limited through its subsidiaries entered into an amended and extended Trademark License Agreement with Revlon to license Revlon’s trademark for haircare appliances and tools (the “Revlon License”).
• The terms of the Revlon License grant Helen of Troy an exclusive, global, fully paid-up license to use the Revlon trademark to manufacture, sell, and distribute licensed merchandise through December 31, 2060, with, at the company’s option, three additional 20-year auto-renewal periods.
• In exchange for this 100-year exclusive global license, the company paid a one-time, up-front license fee of $72.5 million in cash and will no longer pay ongoing royalties.
• The transaction implies a multiple of less than 9 times estimated fiscal year 2022 after-tax cash flows and provides for long-term continuity of the company’s right to use the Revlon trademark and related intellectual property.
• The transaction also leverages a strong balance sheet and efficient debt structure to further accelerate the company’s value creation flywheel. The up-front license fee of $72.5 million is expected to be funded using the company’s cash on hand.