Bend’s Hydro Flask acquired by Helen of Troy for $210 million

Hydro Flask, the Bend-based maker of high-performance, insulated stainless steel flasks, announced Monday it will be acquired by a subsidiary of Helen of Troy, a leading global consumer products company that said it was paying $210 million for the business..

“Helen of Troy will add Hydro Flask to its strong portfolio of well-recognized and trusted household brands, including innovation- and design-oriented brands such as OXO® and PUR®,” the Hydro Flask announcement said.

“Hydro Flask will continue to be managed and headquartered in Bend, Oregon, and will retain all employees,” the company added.

“Our team is thrilled to join the ranks of Helen of Troy’s smart and creative brands,” said Scott Allan, Hydro Flask president and CEO. “This offers us an incredible opportunity for continued growth and industry leadership, thanks to the efficiencies and global resources provided by Helen of Troy.

“We’re excited about the next chapter, and remain committed to our mission: To Save the World from Lukewarm.”

“Outdoor enthusiasts love Hydro Flask’s products, as well as its genuine brand heritage rooted in the outdoor mecca of Bend, Oregon. The company is led by a group of passionate end users, who we look forward to working with and welcoming into our family,” said Helen of Troy CEO Julien Mininberg.

“Helen of Troy is dedicated to providing innovative consumer products that make everyday living easier, and Hydro Flask’s robust product line fits in perfectly with that quest.”

The acquisition of Hydro Flask comes on the heels of a tremendous year of growth and recognition for the Bend company. In 2015, Hydro Flask landed on the Inc. 500 List of Fastest-Growing Private Companies for a second year in a row, was named as one of Portland Business Journal‘s Fastest-Growing Private 100 Companies in Oregon and was named REI’s Action Sports Vendor Partner of the Year.

Helen of Troy, which started as a wig store in downtown El Paso in 1968, still has its U.S. corporate headquarters in El Paso. It has more than 1,600 employees and 2015 revenues of $1.45 billion.

The company said it “maintains a strong portfolio of well-recognized and trusted household brands, including OXO, PUR,Revlon, Honeywell, Vicks, Braun and others,” in brand categories from housewares to health care.

Here’s the Helen of Troy announcement:

Helen of Troy Limited (NASDAQ, NM:HELE), designer, developer and worldwide marketer of consumer brand-name housewares, health and home, nutritional supplement and beauty products, announced that one of its subsidiaries has entered into a definitive purchase agreement to acquire Hydro Flask and all membership units of Steel Technology, LLC.

Hydro Flask is a leading designer, distributor and marketer of high performance insulated hydration vessels for active lifestyles. Hydro Flask adds a fast growing brand that has built equity among outdoor and active lifestyle enthusiasts with a product lineup, innovation pipeline and margin profile that complements Helen of Troy’s Housewares segment and extends its reach into the Outdoor and Athletic Specialty, Natural Foods and e-commerce channels.

he Hydro Flask acquisition is an excellent fit with Helen of Troy’s strategic goal of investing its strong cash flow in businesses that can accelerate its profitable growth in categories where it can add value.

The purchase price is expected to be approximately $210 million in cash, subject to certain customary closing adjustments, implying a pre-synergy multiple of less than 12 times projected calendar year 2016 adjusted EBITDA. We expect calendar year 2016 net sales revenue of approximately $65 – $70 million.

Hydro Flask is expected to be immediately accretive to Helen of Troy’s sales growth rate, gross margin, cash flow, adjusted EBITDA margin and diluted earnings per share.

“We are delighted to announce the acquisition of Hydro Flask, adding a well-respected and fast growing outdoor brand to our thriving Housewares business,” said Helen of Troy CEO Julien Mininberg.

“In less than five years, Hydro Flask has become a strong #2 in hydration bottles in the outdoor & fitness channels. The business has more than quadrupled in size since the beginning of calendar year 2014, grew over 50% in calendar year 2015, and has been the key driver behind the majority of the growth of the category itself.

“Hydro Flask is led by a group of passionate end users who are highly skilled at developing the premium segment of their category and an authentic brand culture with high quality products that delight consumers. Outdoor enthusiasts love Hydro Flask’s stainless steel hydration products, as well as its genuine brand heritage rooted in the outdoor mecca of Bend, Oregon. Hydro Flask’s team will remain in Bend, where its employees live every day with the same love and respect for the outdoors they share with their rapidly growing consumer base.”

Mininberg continued, “Our third acquisition in less than two years, this transaction marks Helen of Troy’s first new brand in its Housewares segment since acquiring OXO in 2004. OXO has since tripled its revenues solely through organic growth and has established a track record of delivering strong margins. We are dedicated to providing innovative consumer products that make everyday living easier.

“From its founding 25 years ago, the OXO brand has been a hallmark of this mission, recognized globally for how a well-executed Universal Design philosophy creates products that benefit consumers in a growing array of categories ranging from kitchen gadgets to high chairs. Hydro Flask adds another innovative growth brand to this model.

“Managing Hydro Flask within Helen of Troy’s Housewares segment should allow us to leverage our proven expertise in innovation, product design and category development. We also expect to leverage key Helen of Troy shared services where we can add value such as our larger infrastructure and international footprint, while preserving the qualities of Hydro Flask we admire. We are very pleased to welcome the Hydro Flask management team to the Helen of Troy family, along with the strong partnership they have built with key outdoor channel retailers and major e-tailers, and the foundation for future growth they have created.”

About Hydro Flask

Hydro Flask is the award-winning global leader in high-performance, insulated stainless steel flasks. Founded in 2009 in beautiful Bend, Oregon, the company’s mission is to save the world from lukewarm. Using Pro Grade 18/8 stainless steel and the company’s unique Temp Shield Insulation™, Hydro Flask food and beverage flasks are stylish, BPA-free, recyclable, and backed by a lifetime warranty. Hydro Flask strongly believes that great flasks and great causes go hand-in-hand. Through its charitable arm, 5% Back, consumers can allocate a portion of the net profit of their purchase to a charity of their choosing. Learn more about Hydro Flask’s charitable giving at https://www.hydroflask.com/5-back.