Texas Business reports: EL PASO—Helen of Troy Limited, designer, developer and worldwide marketer of brand-name personal care, health care, home environment and household consumer products, entered into a definitive agreement with The Procter & Gamble Company to acquire all of the assets related to the manufacturing and selling of products marketed under the PUR trademark, including all of the outstanding stock of PUR Water Purification Products Inc.
The acquisition includes the world-wide PUR trademark, its current and future product line, assets related to the operations of the PUR business, manufacturing equipment, and more than 200 patents.
The acquisition is expected to close by December 31, 2011, subject to customary closing conditions, including regulatory approvals.
The PUR business sells and markets a variety of water filtration products under its namesake PUR brand in the growing water purification category. PUR's products, which include faucet mount systems and filters, pitcher systems and filters, and refrigerator filters, are sold throughout the United States. Sales for the twelve months ending December 31, 2012 are expected to exceed $110 million. The acquisition is expected to be immediately accretive to earnings.
“We are very excited to add the PUR business to the Helen of Troy family,” said chief executive Gerald J. Rubin in a prepared statement. “Globally, water purification is an important consumer need and water purity is a high profile issue. The residential water purification category has seen strong organic growth in North America in recent years. PUR is the market leader in the U.S. faucet mount and refrigerator filter categories, and a strong player in water pitcher filtration systems. The acquisition is a natural fit for our Healthcare/Home Environment segment. The category is a close adjacency to that division's current customer base, target audience, and product focus areas. PUR adds an important brand to our strong portfolio of well-recognized and widely-trusted brands for our retail partners and consumers, and is in line with our overall corporate strategy of adding businesses with value-added consumables, such as the proprietary filters that are important in this category. Through our expertise in product sourcing and long-standing commitment to new product development, we are confident the PUR business will be an integral and important component of Helen of Troy.”
“Since acquiring PUR in 1999, P&G has grown the business and invested in the brand,” said P&G Global Personal Health Care president Tom Finn in a statement. “It has outstanding products, a powerful equity, a strong market position, and a compelling pipeline of new initiatives. But after determining the water purification category is not core to P&G's long-term portfolio, we are pleased to sell it to a company for whom it is a close fit and where it will receive greater focus.”
The acquisition does not include P&G's Children's Safe Drinking Water corporate philanthropy program. The powder product and patents used in that program will remain with P&G, who will transition that effort to the P&G corporate name.
Helen of Troy Limited intends to finance the acquisition through its existing working capital and through an expansion of its current credit facility.
Helen of Troy Limited is a consumer products company offering creative solutions for its customers through a portfolio of brands, including: Housewares: OXO, OXO Good Grips, OXO Soft Works and OXO Steel; Personal Care: Revlon, Vidal Sassoon, Dr. Scholl's, Pro Beauty Tools, Sure, Pert Plus, Infusium23, Brut, Ammens, Hot Tools and Gold 'N Hot; and Healthcare/Home Environment: Vicks, Braun, Honeywell, Stinger and SoftHeat. The Revlon® trademark is used under license from Revlon. The Vidal Sassoon, Vicks\ and Braun trademarks are used under license from The Procter & Gamble Company. The Dr. Scholl's trademark is used under license from Schering-Plough/Merck. The Honeywell trademark is used under license from Honeywell.