Key Takeaways
- Empower Brands, owned by Spectrum Brands and Oaktree, made its offer public after two private proposals were turned down.
- Helen of Troy says its strategic plan will deliver more value than the offer.
- The two companies give differing accounts of a confidentiality agreement offered during their talks.
Helen of Troy Limited, the parent company of Hydro Flask and Osprey, said Wednesday its board unanimously rejected an unsolicited, non-binding proposal to acquire the company for $37 per share in cash.
The offer came from Empower Brands Holdings Group LLC, the home and personal care business jointly owned by Spectrum Brands Holdings Inc. and funds managed by Oaktree Capital Management. Its brands include Remington, Black+Decker, George Foreman, Russell Hobbs and PowerXL. Empower Brands made its proposal public Wednesday, putting Helen of Troy’s implied enterprise value at about $1.6 billion.
Helen of Troy, based in El Paso, Texas, said the proposal “substantially undervalues” the company and its prospects.
Where Osprey and Hydro Flask Fit
Hydro Flask and Osprey sit in Helen of Troy’s Home & Outdoor division alongside OXO. The division generated $832.9 million in net sales in fiscal 2026, which ended Feb. 28, or 47% of the company’s total of about $1.8 billion.
Osprey is one of four brands Helen of Troy calls Power Brands, along with OXO, Braun and Olive & June. The company expects them to drive about 75% of its net sales growth over the next five years. Hydro Flask is not on the list, though the company said the classification is expected to evolve.
Power Brand net sales outpaced the company overall in the first two quarters of fiscal 2027. Osprey also launched Ozone Hardside, an ultra-lightweight, four-wheel luggage collection, online in October.
Empower Brands Makes Its Case
Empower Brands said the offer is a 31% premium to Helen of Troy’s 30-trading-day volume-weighted average share price. An Empower Brands affiliate already owns about 4.5% of Helen of Troy’s shares, and the combined company would have about $2.9 billion in annual revenue.
Helen of Troy rejected an initial $34-per-share offer in September. Empower Brands raised its bid to $37 in October, and Helen of Troy’s board rejected that offer too.
David Maura, Chairman and Chief Executive Officer of Spectrum Brands and Chairman of Empower Brands, said in a statement that Helen of Troy, as currently structured, “does not have the scale or the financial ability” to grow, through acquisitions or otherwise, to the size it needs to compete.
Empower Brands cited an 87% drop in Helen of Troy’s share price over five years, $886 million in impairment charges in fiscal 2026 and three permanent CEOs over the past three years. It said the deal has no financing contingency and that it could complete due diligence and a merger agreement in about 45 days.
Helen of Troy Points to Its Strategic Plan
Helen of Troy said the offer is timed to exploit the dislocation in its stock price since Liberation Day, created in part by tariff-related business disruption. The company is implementing a strategic plan unveiled in April 2026 under Chief Executive Officer G. Scott Uzzell.
Helen of Troy said year-to-date net sales are up 4.9%, and it has cut total debt by about $244 million over the past 18 months. Its stock has risen 67.5% so far this fiscal year.
“The Board believes that continuing to execute Helen of Troy’s strategy will create greater long-term value than pursuing Empower Brands’ proposal,” Helen of Troy said in a statement.
Differing Accounts of Confidentiality Talks
Helen of Troy said Empower Brands refused a customary non-disclosure agreement that would have let it receive information. Empower Brands said the agreement would have restricted its ability to, among other things, publicly disclose its interest in the company and its proposal.
