Helen of Troy sells health and beauty business Healthy Directions

US-based personal care company Helen of Troy has sold its nutritional supplements and skincare business Healthy Directions to Direct Digital.

The sale includes $46m cash and a supplemental payment with a target value of $25m, which will be paid before 1 August 2019.

Helen of Troy plans to use the proceeds to pay debts, make acquisitions, or share repurchases.

The transaction is subject to customary working capital and other adjustments.

Healthy Directions CEO Julien R. Mininberg said: “This transaction will strengthen the overall portfolio of Helen of Troy, and focus our resources toward our most attractive business prospects, including our seven Leadership Brands.”

“Our strategic plan also includes seeking further acquisition opportunities. The direct-to-consumer systems and fulfilment capability we have built for Healthy Directions will continue to be of value to Helen of Troy’s remaining portfolio.

“This will allow us to continue building on the investments and know-how in direct-to-consumer online sales, and the fulfilment efficiencies we have gained in our distribution centre.”

Helen of Troy acquired Healthy Directions for approximately $195m in cash in 2014.

Cantor Fitzgerald has provided advisory services, while Baker & McKenzie served as legal counsel to Helen of Troy on the transaction.

Deloitte Corporate Finance offered financial advisory services and Davis & Gilbert acted as legal counsel to Direct Digital.