Playtex Grows Core Category with Hawaiian Tropic Acquisition
Playtex Grows Core Category with Hawaiian Tropic Acquisition
Playtex Products Inc. acquired the stock of Tiki Hut Holding Company Inc., the owner of Hawaiian Tropic sun care -- a move that is in line with Playtex’s acquisition strategy to acquire products in its core categories that promote growth internationally. The acquisition increases the size of the Playtex skin care line -- which includes the Banana Boat brand -- to more than $340 million in annuals sales. The purchase price for the stock, and repayment of all outstanding debt at the closing, was $83 million, plus a seasonal working capital adjustment.
"Hawaiian Tropic is an important addition to our skin care brand portfolio,” says Neil P. DeFeo, chairman, president and
Hawaiian Tropic sells its products -- spanning the Tanning, General Protection, Baby and Kids, Sunless, After-Sun, Burn Relief and Lip protection categories -- globally to more than 700 customers through multiple distribution channels including mass, drug and food. In 2006, net sales of Hawaiian Tropic exceeded $110 million with approximately 20 percent of the company
"I am delighted to know that the Hawaiian Tropic brand will be in the hands of a company that understands and builds great consumer brands. I am confident the Playtex management team will take Hawaiian Tropic to the next level given their depth of experience and demonstrated success in the category," comments Hawaiian Tropic Founder Ron Rice.
Once fully integrated, Playtex expects to derive annual synergies of approximately 10 percent of net sales or $11 million. When fully synergized in fiscal 2009, Playtex expects Hawaiian Tropic
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