How the Helen of Troy Acquisition of Healthy Directions Reflects Positively on the Future of Direct Marketing
Global consumer products company Helen of Troy has just confirmed its purchase of direct-to-consumer retailer and leading health publisher Healthy Directions. The experts at Macromark have observed that this acquisition accomplishes several objectives for Helen of Troy, one of the most important being their inclusion into the growing vitamin, mineral, and supplement (VMS) industry and their alignment with a company that understands and has a superior direct-to-consumer business model.
The purchase price was approximately $195 million and is expected to increase Helen of Troy’s cash flow by 10% year-over-year. Healthy Directions has been an increasingly successful company, growing at a rate higher than the VMS industry average. What is equally attractive about Healthy Directions is their portfolio of supplements and health care products and their ability to directly market and deliver to consumers. With the VMS market projected to keep growing at a steady rate for at least the remainder of the decade and with 70% of U.S. seniors reportedly taking vitamins, Helen of Troy is entering the space with a partner that already has a system in place to capitalize on these figures.
Helen of Troy CEO Julien R. Mininberg says that he likes “Healthy Directions’ direct-to-consumer business model, which drives growth by focusing on education, replenishment, and customer loyalty with a wide range of high-quality products and programs designed to drive repeat purchases.” Miniberg goes on to admit that aligning with Healthy Directions allows them to diversify from the standard “brick and mortar retail and online retailers” which presently exist within Helen of Troy businesses.
This sale shows not only the strength of the health and wellness industry, but how direct marketing is the most appropriate platform to reach consumers in this sector. Both Helen of Troy’s Chairman and CEO have expressed that the direct-to-consumer system Healthy Directions has in place is a major benefit to the purchase.
Macromark has been a longtime broker, supplying consumer lists to support the direct mail marketing campaigns of companies just like the ones mentioned. The VMS industry is particularly exciting, as the U.S. senior population is expected to grow by over 50% in the next decade. Direct marketing will play a huge role in capitalizing on this growth, and Macromark will continue our presence by serving as the intermediary for taking advantage of this opportunity.
“Helen of Troy Announced Agreement to Acquire Healthy Directions for Approximately $195 Million,” The Wall Street Journal, June 11, 2014; http://online.wsj.com/article/PR-CO-20140611-903939.html.
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