April 20, 2007
Playtex Buys Hawaiian Tropic Sun Care
Playtex Products, a US personal care products company, has acquired the stock of Florida-based Tiki Hut Holding Company, the owner of Hawaiian Tropic sun care, for $83 million.
Neil DeFeo, chairman, president and CEO of Playtex, said: "Hawaiian Tropic is an important addition to our skin care brand portfolio. It increases the size of our skin care segment to more than $340 million in annual sales. Further, this acquisition is in line with our acquisition strategy of acquiring products in our core categories that enable us to grow internationally."Hawaiian Tropic's broad product portfolio offers items in all major sun care segments including tanning, general protection, baby and kids, after-sun, burn relief, and lip protection. Playtex said sales of Hawaiian Tropic exceeded $110 million in 2006, with approximately 20% of the company's sales generated outside of North America, primarily in Europe and Latin America.
Playtex, which specializes in feminine care, skin care and infant products, said it will use its revolving credit agreement to fund the acquisition, that the company estimates will be dilutive by approximately $0.07 to $0.10 per share in 2007.
Once fully integrated, Playtex expects to derive annual synergies of approximately $11 million. When fully synergized in fiscal 2009, Playtex expects Hawaiian Tropic's operating income to approach the operating margin levels of the company's existing skin care business of 24%.