Helen of Troy, the US-based consumer goods company, announced its acquisition of nail care brand Olive & June today for $240 million.
The price includes $225 million in cash and a $15 million earnout subject to the brand’s performance over three years, according to the announcement release. Helen of Troy CEO Noel M. Geoffroy highlighted Olive & June’s rapid growth and attractive margins.
Founder and CEO Sarah Gibson Tuttle will stay on and continue to operate the brand “in a stand-alone but supported model,” according to the release.
Tuttle founded Olive & June in 2013 as a nail salon, expanding into online sales of nail polish and at-home manicure kits in 2019 ahead of the pandemic shutdowns. The brand has previously secured investment from VC firms including Sugar Capital, Alpha Edison, Essential Investment Capital, Jackalope Ventures and Short List Capital. It is expected to reach $92 million in net sales revenue for 2024.
Olive & June joins hair businesses Drybar and a Revlon tool license in the Helen of Troy portfolio, which also includes household names such as kitchenware brand OXO, cough medicine brand Vicks and outdoor brands Hydroflask and Osprey.
Olive & June’s financial advisor was Raymond James and legal counsel was Sidley Austin LLP.
Following the deal, Helen of Troy will update its outlook for its fiscal third-quarter earnings release on Jan. 9 to reflect expected growth in revenue, gross profit margin, adjusted EBITDA margin, adjusted diluted EPS growth rate and free cash flow conversion.
Learn more:
The Brands Driving the Post-Pandemic At-Home Nail Boom
The shuttering of nail salons during the pandemic birthed a new sector of digitally-native brands selling at-home manicure kits. Three years later, category leaders are more than doubling sales as economic challenges permanently alter consumers’ nail care habits.
