Helen of Troy expands into branded appliance market
license to sell personal care products in the US and Europe under
the well-known Bed Head product name by Tigi and Toni & Guy.
The acquisition sees the company join forces with New Jersey based licensing company, Stone America, which currently holds the license for the products. It will create hair care appliance products under the Bed Head by Tigi product name that intended to compete in the higher-end hair care product market.
The announcement was made yesterday, with the company targeting the range at the 'young style trendsetters' that the Bed Head name is already linked with. Due to the previous success of the Bed Head brand, the company is planning to make its branded hair care appliances the main future focus of the company in a bid to emerge on top in the competitive category.
The range will consist of hair dryers, hair styling irons and straighteners, hot air brushes, hair setters, combs, brushes and hair care accessories, and other personal care products.
Gerald J Rubin, chairman, CEO and president of Helen of Troy spoke of the prospects of the brands and said that 'products sold under these trademarks will become one of the most significant personal care products for Helen of Troy over the long term'.
An acquisition of this sort was predicted last year, following the company's announcement in 2005 that despite a 27 per cent fall in its first quarter profits due to administrative, selling and general expenses all mounting significantly the company still managed to maintain a relatively healthy balance sheet, with $7 million in cash and $434 in shareholders equity.
By creating the new appliance range the company is taking the exciting step of expanding the Bed Head product brand further than the current hair care ranges and taking it into a new field of personal hair care appliances, indicating the overall significance the company has placed on the success of the Bed Head range.
The company will initially promote the brands within the US, followed by the rest of the western hemisphere, with shipment due to start in early 2007.
Toni & Guy products are well respected within the professional hair care industry and in the mass beauty market, with the Tigi Bed Head ranges being amongst the most popular brands. Therefore the company is keen to push Bed Head by Tigi appliances into a leading range that emulates its namesake's success.
Based in El Paso, Texas, Helen of Troy sells brand names such as Vidal Sassoon, Revlon, Sea Breaze under licensing agreements. It also owns the OXO, Brut and Vitalis brand names, as well as its own ranges of hair and beauty care products.
