Helen of Troy has agreed to acquire Osprey Packs, Inc., a developer of daypacks and backpacks.
Founded in 1974 and based in Cortez, Colo., Osprey markets a range of backpacks and daypacks for hiking, mountaineering, skiing, climbing, mountain biking, trail running, commuting, and school, as well adventure travel packs, wheeled luggage and travel accessories.
Osprey joins Helen of Troy’s Hydro Flask hydration drinkware business in the outdoor, recreational and travel products space. Helen of Troy also markets housewares under the Oxo brands, as well as wellness and beauty appliances under such brands as Vicks, Honeywell, PUR, Braun, Revlon and Hot Tools.
Helen of Troy said it is acquiring Osprey Packs for $414 million in cash in a transaction expected to close be the end of the 2021 calendar year. Helen of Troy expects Osprey Packs’ calendar year 2021 net sales revenue to be $155 to $160 million.
Julien Mininberg, Helen of Troy’s CEO, said the Osprey Pack deal marks an important step in Helen of Troy’s plan to acquire and invest in businesses that can accelerate profitable growth in categories that leverage its scalable shared services and operating platform.
“This acquisition adds an iconic ninth leadership brand that complements our world-class portfolio and adds critical mass to our value-creation flywheel. Combining the capabilities, authenticity, and credibility of this proven, highly respected outdoor pioneer with our global footprint and scalable global shared services creates opportunities for new efficiency and growth. Along with Hydro Flask, we can now serve and delight an even larger number of the passionate end-users in the large and growing outdoor adventure category.”
Mininberg said about half of Osprey sales are outside the U.S., further accelerating Helen of Troy’s strategy to invest in international growth, including a focus on Europe/Middle East/Africa and Asia Pacific regions. Osprey’s design center and sourcing base in Vietnam offers an established platform to advance Helen of Troy product capabilities in soft goods while accelerating work already underway at Helen of Troy to further diversify its supply chain beyond China and Mexico, Mininberg added.
Mininberg noted Osprey’s environmentally responsible strategic foundation. Osprey incorporates low-impact chemicals and materials and recycled or recyclable packaging. It also sources 100% renewable electricity and purchases carbon offsets for natural gas and company-owned vehicles used at its facilities in Colorado and Utah.
Mike Pfotenhauer, founder of Osprey, said, “Osprey’s top-quality, high-performance, innovative gear is a reflection of the brand’s love of adventure and devotion to the outdoors. Today’s announcement is a natural next step as we look to build Osprey further. I know it will be in good hands with Helen of Troy, with its proven stewardship of outstanding brands and global scale. Its culture and values are highly consistent with Osprey.”