Global consumer products company Helen of Troy Limited has announced a definitive agreement to acquire DIY nail care brand Olive & June, LLC. According to a media statement, the deal includes $225 million in cash at closing, with an additional $15 million earnout contingent on performance over the next three years.
The press statement confirmed that the acquisition is expected to close before 2024, subject to customary closing conditions and regulatory approvals.
About the acquisition
Founded in 2013, Olive & June is an “omni-channel nail care brand trailblazing the DIY nail revolution,” according to Helen of Troy’s press release. Its offerings include nail polish, artificial nails, tools, treatments, and other at-home nail care products designed to provide “a salon-quality experience at home.”
The company’s digital-first model engages consumers and fosters brand loyalty, with social media engagement “well above the category averages.”
Helen of Troy emphasized the strategic and financial benefits of the acquisition. “The Olive & June acquisition is an excellent, complementary fit with Helen of Troy’s strategic goal of Continuing Better Together M&A,” the company stated. Helen of Troy expects Olive & June to operate in a “stand-alone but supported model,” retaining its management team, including founder and CEO Sarah Gibson Tuttle.
Strategic category expansion efforts
Helen of Troy’s Chief Executive Officer, Noel M. Geoffroy, expressed enthusiasm for the acquisition, noting: “We could not be more excited to add Olive & June to our portfolio of leading brands, and we welcome its passionate associates and visionary leadership team to the Helen of Troy family.” She added, “Olive & June’s innovation-driven performance, highly relevant vision of democratizing nail care for everyone, award-winning products, and unique consumer engagement model are impressive and inspiring.”
The purchase reflects Helen of Troy’s effort to diversify and grow its portfolio, particularly in the Beauty category. Geoffroy stated: “Olive & June complements our existing Beauty portfolio and broadens us beyond the Hair category, adding a consumables business that is both high growth and high margin.”
Sarah Gibson Tuttle, founder and CEO of Olive & June, expressed her excitement about the partnership. “When I started Olive & June, the mission was simple: to make salon-quality nails accessible to everyone, everywhere,” she said. “Now, as we join the Helen of Troy family, a company known for elevating everyday experiences with innovative consumer products, I could not be more thrilled to lead this next chapter of growth for the brand.”
Future projections
Helen of Troy projects Olive & June’s 2024 net sales revenue to be approximately $92 million and expects the acquisition to be “immediately accretive” to several key financial metrics, including revenue growth rate, gross profit margin, and adjusted EBITDA margin. The company added that the purchase price implies “a multiple of less than 11x estimated calendar year 2025 adjusted EBITDA before synergies,” which it described as favorable compared to recent transactions.
As part of its financing strategy, Helen of Troy also highlighted its ongoing efforts to manage debt. It noted that “approximately 71% of the Company’s total debt is fixed at an average SOFR rate of 3.9% through February 2026.”
The release concluded that this acquisition underscores Helen of Troy’s commitment to expanding its footprint in high-margin, high-growth categories and marks a significant step in its strategic transformation.
