Helen of Troy Tells Hydro Flask's Would-Be Buyer to Take a Hike

Helen of Troy's board unanimously rejected an unsolicited $37-per-share takeover offer from Empower Brands, the owner of Black & Decker and Remington, that would have valued the company at roughly $1.6 billion. Helen of Troy owns Hydro Flask, along with Osprey and OXO, and it called the bid opportunistic, timed to take advantage of a stock price the company says has been depressed partly by tariff pressure from last year's trade policy changes.

The board says it engaged privately with Empower before the offer went public, but the talks stalled over a nondisclosure agreement. Empower refused to sign one, which would have barred it from disclosing its interest, and Helen of Troy needed that signature before it would open its books any further. Going public with an unsolicited bid is a familiar pressure tactic. It puts a number in front of shareholders and dares the board to explain, in writing, why that number isn't good enough.

Helen of Troy's answer, led by chief executive Scott Uzzell, is that its own multiyear turnaround plan will create more value than a quick sale would. The company says it remains open to deals that serve its shareholders, which is corporate language for "make us a better offer." For now, Hydro Flask stays independent, and Empower's Black & Decker and Remington don't get a water bottle brand to go with the power tools.

Source: Retail Dive

Kyle Duford, Founder & Editor, BRNDWIRE. More from Kyle →