On Jun 27, Zacks Investment Research upgraded consumer product
Helen of Troy Limited
) to a Zacks Rank #1 (Strong Buy) backed by the recent initiatives
to expand in the growing health and wellness
Helen of Troy has witnessed sharp upward estimate revisions
after it made several strategic acquisitions and agreements in the
recent past to cement its presence in the health and wellness
In June, Helen of Troy entered into a licensing agreement with
the pioneer of healthy non-stick cookware, The Cookware
Under the agreement, Cookware is scheduled to launch three
high-quality cookware products bearing the brand name OXO Good
Grips. The cookware will feature the popular Universal Design of
OXO along with Cookware Company's premium materials, best-in-class
Perfluorooctanoic (PFOA)-free coatings and advanced manufacturing
and forging processes.
The OXO brand is widely known for offering user-friendly
consumer products. The agreement will not only facilitate OXO
brand's entry into the category of non-stick utensils, but also
broaden Tarrytown, NY-based Cookware's platform.
We are encouraged by Helen of Troy's foray into newer
categories. The company's entrance into non-stick cookware closely
follows its decision to acquire the U.S.-based retailer and health
publisher Healthy Directions, LLC and its subsidiaries to enter the
growing vitamins, minerals and supplements (VMS) category in May
The deal is expected to be closed in the second quarter of
fiscal 2014. Post acquisition, Healthy Directions will continue to
operate from Bethesda, MD under its current management team.
The Healthy Directions acquisition is expected to be accretive
to revenues by more than 10% on an annualized basis and also boost
cash flow, adjusted EBITDA and adjusted earnings per share.
The future of the VMC business looks bright because according to
Nutrition Business Journal, the market is expected to continue
growing at a mid-to-high single-digit rate annually through 2020.
Moreover, per the journal, more than 70% of the U.S. population,
aged 55 years and above took vitamin supplements in 2013.
Moreover, per the U.S. Census Bureau's forecast, national
population, is expected to grow more than 50% between 2012 and
2025. In addition, the Census projects that the number of people
above the age of 75 years will grow more than 40% during the same
Apart from Cookware and Health Directions, Helen of Troy has
entered into several strategic relationships with consumer product
Procter & Gamble Co.
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