Helen of Troy to buy out P&G’s hair care division

Looking to grow by introducing new products, personal-care products maker Helen of Troy Ltd has entered into a deal to buy Procter & Gamble Co's Infusium 23 hair-care business in an all-cash deal for an undisclosed amount. The brand, which is more than 80 years old, includes shampoo and conditioner.

Helen of Troy, which plans to integrate Infusium 23 into its Idelle Labs division of skin- and hair-care products, said it expects the deal to add to earnings immediately. The company estimates the Infusium 23 business to generate about $40 million in sales on an annualized basis, and expects the deal to close by March 31.

At the same time P&G has been reducing its exposure to slow-growing businesses that can't keep pace with its annual sales-gain target of four to six per cent. This policy was underlined by last year's $2.95-billion sale of the Folgers coffee business to JM Smucker Co.

Helen of Troy chairman and chief executive Gerald Rubin said in a statement that adding Infusium to a product line that includes Ogilvie, Vitalis, Brut and Sea Breeze will enhance the company's position in the hair-care market.

"We are very pleased to be acquiring the Infusium 23 brand from P&G. We currently have a leading position in hair care styling with our innovative appliance and accessory businesses and adding Infusium 23 will enhance our role as a comprehensive provider of solutions for our hair care consumers and styling professionals,'' Rubin said.

''We are excited to be adding this quality brand name to our existing worldwide distribution, and believe it will provide future value to our customers and shareholders alike," Rubin concluded.

Last October, Helen of Troy bought hair-care products label Ogilvie from bankrupt Ascendia Brands Inc for about $4.7 million.