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Osprey Packs sold to Helen of Troy

Published November 30, 2021

EL PASO (BRAIN) — Helen of Troy Limited, a publicly traded company that owns several consumer product brands, has agreed to acquire Osprey Packs for about $414 million. Osprey, founded in 1974, makes hiking and backpacking packs as well as hydration packs for cycling.

Helen of Troy's other brands include OXO, Hydro Flask, Vicks, Braun, Honeywell, PUR, Hot Tools and Drybar. Last year it had revenues of $2.03 billion.

Julien R. Mininberg, Helen of Troy's Chief Executive Officer, said, "For nearly half a century, Osprey's premium products have delivered superior consumer-centric designs, innovative features and construction, outstanding materials and quality, and sustainability that resonate strongly with outdoor enthusiasts around the world. ... Along with Hydro Flask, we can now serve and delight an even larger number of the passionate end users in the large and growing outdoor adventure category. We believe we are better together."

Mininberg said Osprey and Hydro Flask will combine to attract "thousands of additional retail doors." He also noted that Osprey's production facilities in Vietnam diversifies Helen of Troy's supply chain beyond China and Mexico.

Osprey's headquarters are in Cortez, Colorado, in the Four Corners region. In recent years Osprey has made efforts to use sustainable design and manufacturing practices, including the use of low-impact chemicals and recycled or recyclable packaging. It sources 100% renewable electricity, and purchases carbon offsets for natural gas and company-owned vehicles used at its facilities in Colorado and Utah.

"This business philosophy and practice is very much aligned with Helen of Troy's ever-growing ESG ambitions," Mininberg said.

Mike Pfotenhauer, the founder of Osprey, said, "I want to extend my appreciation and reiterate my respect to all of my current and former Osprey colleagues and their families for their commitment not only to our company, but to each other and their communities. Their dedication has built Osprey into a brand and family that millions of end users trust and care about deeply. Osprey was founded 47 years ago with the dream of creating the perfect pack. We first began custom making packs for mountaineers and adventure travelers headed to points unknown. Demand grew and grew and so did our expertise in design, manufacturing, and on-time delivery. Osprey's top-quality, high-performance, innovative gear is a reflection of the brand's love of adventure and devotion to the outdoors. Today's announcement is a natural next step as we look to build Osprey further. I know it will be in good hands with Helen of Troy, with its proven stewardship of outstanding brands and global scale. Its culture and values are highly consistent with Osprey. We expect the combination of Osprey and Helen of Troy to create significant opportunities for our employees, vendors, and retail partners to experience the next phase of growth and meet even more of the needs of travelers everywhere on whatever trail they are on."

The net purchase price implies a multiple of less than 13.5 times Osprey's estimated calendar year 2022 adjusted EBITDA. Helen of Troy said it expects Osprey's calendar year 2021 net sales revenue to be $155 - $160 million.

The transaction is expected to close before the end of the calendar year.

Helen of Troy is traded on Nasdaq under the HELE symbol.

Topics associated with this article: Mergers, Acquisitions & Investments

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