Helen of Troy
) is geared to enter the vitamins, minerals and supplements (VMS)
category with the takeover of U.S. based retailer and health
publisher Healthy Directions, LLC and its subsidiaries in a cash
transaction worth $195 million. The deal is expected to be closed
in the second quarter of fiscal 2014. Healthy Directions will
continue to be based in Bethesda, Marylandafter the close of
acquisition. The company's management team will also continue post
The Healthy Directions acquisition is expected to be accretive
to revenues by more than 10% on an annualized basis and also affect
cash flow, adjusted EBITDA and adjusted earnings per share
Healthy Directions will bring with it several highly acclaimed
physicians and nutritional experts in heart health, digestive
health, joint health, skin care and vision support.
The future of the VMC business seems bright because according to
Nutrition Business Journal, the VMS market is expected to continue
growing at a mid-to-high single digit rate annually through 2020.
Moreover, as per market research by the journal, more than 70% of
U.S population, aged 55+, took vitamin supplements in 2013.
Moreover, as per the U.S. Census Bureau's national population
forecast, is expected to grow more than 50% between 2012 and 2025.
Moreover, the Census projects that the number of people above the
age of 75 years will grow more than 40% during the same period.
The acquisition of Healthy Directions is a strategic fit for
Helen of Troy as it is geared to bolster its presence in the health
and wellness category. In this regard, the consumer products
company acquired Kaz in Dec 2010 and PUR a year later from
The Procter & Gamble Company
J.P. Morgan Securities LLC of
JPMorgan Chase & Company
) was the financial advisor to Helen of Troy on the acquisition of
Healthy Directions. Moreover, JPMorgan Chase Bank, N.A. and Bank of
America, N.A. of
Bank of America Corporation
) will finance the takeover.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
HELEN OF TROY (HELE): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
PROCTER & GAMBL (PG): Free Stock Analysis
BANK OF AMER CP (BAC): Free Stock Analysis
To read this article on Zacks.com click here.