Helen of Troy Re-Signs Revlon

This deal isn't a lot of hot air. Helen of Troy Limited entered into an amended and extended trademark license agreement with Revlon to license Revlon’s trademark for hair care appliances and tools (the “Revlon License”). The terms of the Revlon License grant Helen of Troy an exclusive, global, fully paid-up license to use the Revlon trademark to manufacture, sell and distribute licensed merchandise through December 31, 2060 with three additional 20-year auto renewal periods. In exchange for this 100-year exclusive global license, Helen of Troy paid a one-time, up-front license fee of $72.5 million in cash and will no longer pay ongoing royalties. The transaction implies a multiple of less than 9 times estimated fiscal year 2022 after-tax cash flows and provides for long-term continuity of our right to use the Revlon trademark and related intellectual property. The transaction also leverages our strong balance sheet and efficient debt structure to further accelerate our value creation flywheel. The up-front license fee of $72.5 million is expected to be funded using the Helen of Troy's cash on hand.

The cash deal is welcome news to Revlon, which has seen its coffers shrink even faster than its market share.

“Revlon has been an important brand in Helen of Troy’s Beauty portfolio since 1992,” said Helen of Troy CEO Julien R. Mininberg. “As part of Helen of Troy’s overall transformation, our global hair appliance business has more than doubled in recent years and made significant gains in profitability and market share. Our Revlon products have led the way in the United States, Canada, Europe, and Latin America. Outstanding innovation has been a key driver in delighting consumers and winning awards around the world. Our strong portfolio of beauty brands is now the market share leader online in the U.S. hair appliance category, a share leader in several of the largest U.S. brick & mortar customers, and growing rapidly in all major channels.”

According to Mininberg, the fully paid up 100-year Revlon license is a major step forward in Helen of Troy’s plan to continue strengthening and growing its beauty business. Helen of Troy preserved global rights to the brand in all the same categories and channels as before, with favorable terms and compelling economics.

“In addition to our owned brands of Hot Tools, Drybar, and Gold ‘N Hot, further expanding Revlon plays a critical role in our overall Good/Better/Best strategy for continued growth in global hair appliances,” added Mininberg.