Helen of Troy Snares VapoSteam

Helen of Troy Limited acquired the Vicks VapoSteam US liquid inhalant business from Procter & Gamble, which includes a fully paid-up license to the Vicks VapoSteam trademarks. In a related transaction, the company has also acquired a fully paid-up license of P&G’s Vicks VapoPad trademarks for scent pads in the US. The vast majority of Vicks VapoSteam and VapoPads are used in Vicks humidifiers, vaporizers and other health care devices already marketed by Helen of Troy. The transaction includes the acquisition of certain production assets and the inventory related to the above categories, as well as the right to use related intellectual property. The VapoSteam acquisition is expected to be financed with the company’s revolving credit facility. The US Vicks VapoSteam business associated with the transaction had annual revenues of approximately $10 million in calendar year 2014.
 

“Acquiring the US rights to Vicks VapoSteam makes us a leading player in the inhalant category. Adding VapoSteam to our existing VapoPads inhalant further strengthens our US humidifier and vaporizer business, with consumable refills in both the liquid and pad form that deliver the distinctive Vicks scent and relief consumer’s love,” said Julien R. Mininberg, chief executive officer. “By combining the businesses of devices and consumables, we are now able to give inhalants greater marketing focus and to invest in additional new product development. With excellent historical gross margins above our company average, these transactions are expected to further enhance the profitability of our Healthcare/Home Environment segment, add incremental cash flow to Helen of Troy at an attractive valuation, and be accretive in fiscal year 2016. We are also delighted to deepen our long-term partnership with P&G.”