Texas-based consumer products producer Helen of Troy Ltd said Dec. 20 that it sold Healthy Directions LLC, its nutritional supplements segment, to privately held health and wellness products distributor Direct Digital LLC for $46 million in cash and $25 million in supplemental payment, payable on or before Aug. 1, 2019.
The purchase price may still be adjusted according to Healthy Directions' performance through Feb. 28, 2018, according to the release.
Healthy Directions, which was acquired by Helen of Troy in 2014, manufactures nutritional supplements, vitamins, minerals and other health products that are directly sold to customers.
Helen of Troy said it intends to use the proceeds to pay its debt and make accretive acquisitions or opportunistic share repurchases. Julien Mininberg, CEO of the consumer products company, said in a statement that the transaction will strengthen the company's overall portfolio and help it focus its resources toward more attractive business prospects.
Meanwhile, Direct Digital President and co-founder Brandon Adcock said in the announcement that the company intends to use Healthy Directions' marketing platform to strengthen its omnichannel strategy by adding robust content and direct mail capabilities.
