Colgate Announces Agreement to Acquire Hello Oral Care Brand
NEW YORK-- 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.
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.