Helen of Troy Limited has acquired Recipe Products Ltd., owner of fast-growing curly and wavy haircare brand Curlsmith.

The total purchase consideration, net of cash acquired, was $150.0 million in cash, subject to certain customary closing adjustments.

Helen of Troy says Curlsmith immediately becomes the most profitable brand in its portfolio, and further augmentis its beauty segment’s adjusted operating margin, which is already the highest in the company.

In 2021, Helen of Troy sold a number of personal care brands, including haircare line Infusium and Pert Plus.

The acquisition is expected to be immediately accretive to consolidated and beauty segment measures such as sales growth rate, gross profit margin, and adjusted EBITDA margin, as well as consolidated measures such as adjusted diluted EPS5, adjusted diluted EPS growth rate, and cash flow from operations.

“We believe Curlsmith is an excellent fit with Helen of Troy, both strategically and financially. This transaction advances Helen of Troy’s strategy to invest in businesses that can accelerate profitable growth in categories where we can add value and leverage our scalable operating platform,” said Julien R. Mininberg, CEO of Helen of Troy.

Mininberg  said the acquisition aligns with a key Phase II M&A objective of “tucking in early stage, fast growing, and disruptive innovators to complement our portfolio of leadership brands.”

According to Michal Berski, Curlsmith’s founder and CEO, “Helen of Troy has a talent for spotting exceptional indie brands that do things differently, and turbo charging them. So, from the get-go we knew that Curlsmith would be a compelling strategic fit.”

Helen of Troy fell out of Happi's Top 50 ranking in 2020. The company's last appearance was in 2019.