Personal care products maker Helen of Troy Ltd. said it agreed to buy Unilever Plc's Brut brand of deodorants and other products in the Americas for U.S. $55 million.
The deal, which includes Brut fragrances, deodorants, and antiperspirants, is expected to add to Helen of Troy's earnings for the remainder of the current fiscal year, and contribute about $0.20 to $0.24 per share in the year beginning March 1, 2004.
The acquisition adds yet another brand to Helen of Troy's already extensive product lines. The El manufacturer sells a variety of personal care products and hair accessories under licensed brand names such as Vidal Sassoon, Revlon, and Mattel. Wal-Mart is Helen of Troy's largest customer, accounting for about 22 percent of the company's sales.
Unilever will keep the Brut brand in the rest of the world outside of the Americas, including Europe, Africa, Australia, Asia, and the Middle East. Helen of Troy will have the right to sell Brut products in the U.S., Canada, Central and South America.
Brut sales are expected to add about $40 million in revenue over the next 12 months, the company said. Helen of Troy's sales were $106.5 million for the 3-month period ending May 31, a 4-percent increase from the same period a year earlier.
Brut first gained notoriety in the 1970s through its popular television commercials urging consumers to "splash" the fragrance on their face after a shave. (Reuters)
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