Dive Transient:

  • Helen of Troy, which owns Vicks, Drybar and Hydro Flask, amongst others, on Monday acquired open air backpack model Osprey for $414 million in money in a bid to “speed up worthwhile development” via acquisition.
  • The acquisition is anticipated to shut by the top of the yr, topic to customary closing circumstances. Osprey is anticipated to herald 2021 web gross sales of between $155 million to $160 million, in keeping with a press launch.
  • Executives see Osprey as a complimentary model to Hydro Flask, with CEO Julien Mininberg calling the 2 a “compelling mixture” for the outside client.

Dive Perception:

Mike Pfotenhauer, the founding father of Osprey, stated the acquisition is a “pure subsequent step” for the backpack model because it seems to scale. For Helen of Troy, it builds on the corporate’s open air providing, offers it with one other ESG-focused model and provides it a stronger foothold in worldwide markets. Round half of Osprey’s gross sales are outdoors of the U.S., in keeping with Mininberg.

“Combining the capabilities, authenticity, and credibility of this confirmed, extremely revered out of doors pioneer with our international footprint and scalable international shared companies creates alternatives for brand spanking new effectivity and development,” Mininberg stated in a press release. “Together with Hydro Flask, we will now serve and delight an excellent bigger variety of the passionate finish customers within the massive and rising out of doors journey class.”

In a presentation on the acquisition, Helen of Troy highlighted Osprey’s standing as the No. 1 vendor of technical packs, journey packs and on a regular basis backpacks within the U.S., in addition to No. 2 within the U.S. in hydration packs. The corporate provides backpacks for mountain climbing, snowboarding, mountain biking, journey, commute and different classes, and executives see a possibility for Osprey to go far past that. Potential product expansions embody tenting, out of doors attire and footwear.

Notably, Helen of Troy plans to make use of Osprey to cross-sell its different outdoors-related manufacturers, together with Hydro Flask and OXO. Already, a few of Osprey’s largest model companions — together with Nordstrom, REI, L.L. Bean, Dick’s, Moosejaw and Amazon — promote Hydro Flask or different Helen of Troy manufacturers. The goal shoppers for Osprey, Hydro Flask and OXO additionally overlap, and all maintain a better margin positioning, in keeping with Helen of Troy.

In discussing Osprey’s already sturdy penetration within the U.S., Mininberg on a name with analysts stated, “the story shouldn’t be but over on distribution and it isn’t simply outdoors the USA.” Osprey lately added Dick’s as a model associate, which executives referred to as an “enticing” retailer, and Helen of Troy additionally believes it may well enhance Osprey’s gross sales via Amazon and thru its personal DTC channels. Osprey already has a “important” DTC enterprise, in keeping with the corporate, however Helen of Troy plans to scale it additional.

“We’re ramping huge time [on DTC], so is Osprey, and we all know that our IT groups can add worth,” Mininberg stated.

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