Helen of Troy Ltd. is buying the Drybar hair-care business, Drybar Products LLC, for $255 million in cash.
The products business, which includes shampoos, conditioners, tools and styling products, started after Drybar blowout salons, founded by Alli Webb in 2010, took off. The brand is sold inside Drybar studios, as well as at Ulta Beauty and Sephora.
Drybar products are expected to do between $64 million and $66 million in net sales for 2019. The deal is expected to close by Jan. 31.
As part of the transaction, Helen of Troy will grant a worldwide license to Drybar Holdings LLC, the part of the business that operates the blowout salons, to use the Drybar trademark and continue running and expanding those outposts.
"Drybar products are winning in the prestige category with premium appliances, liquids and accessories that resonate with a wealthier, on-trend consumer demographic for use at home and by stylists. The business has more than doubled in size since 2016 and continues to grow at a healthy double-digit rate across a wide array of retailers including Ulta, Sephora, Nordstrom's, Macy's and of course, Drybar salons," said Julien Mininberg, chief executive officer of Helen of Troy.
Helen of Troy also owns Revlon tools and Hot Tools products, and said Drybar can benefit from its expertise in appliances, sales, marketing and international. "Additionally, once we complete the necessary integration activities, we expect to add further value to the business and achieve meaningful synergies by leveraging Helen of Troy's highly capable shared services through our global sourcing, distribution and back office capabilities," Mininberg said.
Financo advised Drybar on the deal.
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