Colgate Announces Agreement to Acquire Hello Oral Care Brand
January 23 2020 - 4:30PM
Business Wire
Colgate-Palmolive Company (NYSE:CL) today announced that it has
agreed to acquire Hello Products LLC (“Hello”), one of the
fastest-growing, premium oral care brands in the United States, a
portfolio company of Tenth Avenue Holdings, a New York City based
private, diversified holding company.
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Colgate Announces Agreement to Acquire
Hello Oral Care Brand (Photo: Business Wire)
Hello has a distinct “naturally-friendly™” lifestyle positioning
with strong appeal among younger consumers and across broad
segments. Hello’s products, which include adult and kids
toothpaste, mouth rinse, toothbrushes and floss, are sold only in
the United States primarily in food, drug and mass retailers and
through e-commerce.
The transaction will be financed with a combination of cash and
debt and is currently expected to close no later than February
2020. Hello will continue to be led by founder Craig Dubitsky and
Lauri Kien Kotcher, Chief Executive Officer.
Noel Wallace, Colgate’s President and CEO commented, “We are
excited to welcome Hello to the Colgate family and are especially
pleased that Craig and Lauri will continue in their leadership
roles. We have great respect for the Hello team and their
impressive product line, and value the strong connection they have
made with younger consumers. With its distinct on-trend
positioning, Hello is a terrific complement to our Colgate and
Tom’s of Maine brands and we look forward to supporting its
continued growth and success.”
Hello’s founder, Mr. Dubitsky, said, “Colgate is the ideal
partner for Hello with a like-minded commitment to the best
consumer oral health, the environment and our communities.” Hello’s
CEO, Ms. Kien Kotcher, added, “Seeing how they have helped other
companies grow and thrive in their portfolio, we are even more
excited to join forces.”
Including transaction costs, the acquisition is expected to be
flat to a penny dilutive to 2020 diluted earnings per share. The
terms of the deal have not been disclosed.
Wachtell, Lipton, Rosen & Katz acted as legal advisors to
Colgate-Palmolive on the transaction. Zukerman Gore Brandeis &
Crossman acted as legal advisors to Hello Products on the
transaction and Piper Sandler acted as financial advisors to Hello
Products on the transaction.
***
About Colgate-Palmolive: Colgate-Palmolive is a leading global
consumer products company, focused on Oral Care, Personal Care,
Home Care and Pet Nutrition. With more than 34,000 people and its
products sold in over 200 countries and territories, Colgate is
known for household names such as Colgate, Palmolive, elmex, Tom’s
of Maine, Sorriso, Speed Stick, Lady Speed Stick, Softsoap, Irish
Spring, Protex, Sanex, Filorga, EltaMD, PCA Skin, Ajax, Axion,
Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and
Hill’s Prescription Diet. The Company is also recognized for its
leadership and innovation in promoting environmental sustainability
and community wellbeing, including its achievements in saving
water, reducing waste, promoting recyclability and improving the
oral health of children through its Bright Smiles, Bright Futures
program, which has reached more than one billion children since
1991. For more information about Colgate’s global business and how
the Company is building a future to smile about, visit
http://www.colgatepalmolive.com. CL-C
Cautionary Statement on Forward-Looking
Statements
This press release may contain forward-looking statements (as
that term is defined in the U.S. Private Securities Litigation
Reform Act of 1995 or by the Securities and Exchange Commission
(SEC) in its rules, regulations and releases) that set forth, among
other things, anticipated results based on management's plans and
assumptions and the timing of completion of the transaction. Such
statements may relate, for example, to the expected timing of the
closing of the transaction and the expected impact on 2020
earnings, among other matters. These statements are made on the
basis of the Company’s views and assumptions as of this time and
the Company undertakes no obligation to update these statements
whether as a result of new information, future events or otherwise,
except as required by law or by the rules and regulations of the
SEC. Moreover, the Company does not, nor does any other person,
assume responsibility for the accuracy and completeness of these
statements. The Company cautions investors that any such
forward-looking statements are not guarantees of future performance
and that actual events or results may differ materially from those
statements. For more information about factors that could impact
the Company's business and cause actual results to differ
materially from forward-looking statements, investors should refer
to the Company's filings with the SEC (including, but not limited
to, the information set forth under the captions “Risk Factors” and
“Cautionary Statement on Forward-Looking Statements” in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2018 and subsequent Quarterly Reports on Form 10-Q). Copies of
these filings may be obtained from the Company's website at
http://www.colgatepalmolive.com.
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