Olive & June founder Sarah Gibson Tuttle has nailed it.
Helen of Troy is buying the nail care model for $225 million in money and a $15 million earnout topic to efficiency over three years, the 2 firms introduced Thursday. The acquisition is predicted to shut earlier than the 12 months finish.
Noel M. Geoffroy, Helen of Troy’s chief govt officer, mentioned: “We imagine Olive & June is a superb match with Helen of Troy each strategically and financially. We see vital alternatives to construct on its strengths in shopper obsession and breakthrough industrial and product innovation, along with serving to develop the model’s availability with elevated distribution. Olive & June enhances our current magnificence portfolio and broadens us past the hair class, including a consumables enterprise that’s each excessive development and excessive margin.”
Based in 2013, the nail care model performs throughout all nail care classes — polish, synthetic, instruments, therapy and care — and rapidly grew to become quantity two in synthetic nails inside 18 months of launching into the class.
It’s offered in 8,000 mass doorways, together with Walgreens, Walmart and Goal, and is the top-selling nail model on the latter the place particular collections typically promote out nearly immediately.
Most not too long ago, struggles within the wider mass market haven’t impacted Olive & June. It expects 2024 web income to be roughly $92 million. What’s extra, the introduction of Gel Polish within the third quarter outperformed expectations by over 150 %.
Gibson Tuttle mentioned: “As we be a part of the Helen of Troy household, an organization recognized for elevating on a regular basis experiences with modern shopper merchandise, I couldn’t be extra thrilled to guide this subsequent chapter of development for the model. I’ve been deeply impressed by Noel’s visionary management and stay up for partnering along with her and the complete Helen of Troy staff. Collectively, we’ll proceed to innovate, encourage, and ship on our promise to be the go-to at-home nail resolution for everybody, in all places. I can not wait to see all that we’ll accomplish collectively.”
She’s going to proceed to guide the model as Helen of Troy is planning a stand-alone however supported working mannequin, with the model persevering with to function largely as it’s operated as we speak besides in areas the place the corporate believes it may speed up Olive & June’s momentum.
Helen of Troy has been getting deeper into magnificence over the previous few years, primarily specializing in hair — till now. In 2019 it acquired Drybar for $225 million; in 2020 it inked a 100-year deal to make use of the Revlon model on hair care home equipment and instruments; and in 2022 it purchased Curlsmith for $15 million.
It intends to replace its outlook for fiscal 2025 to incorporate the incremental affect of Olive & June along side the third quarter earnings launch on Jan. 9.
