American consumer products company, Helen of Troy, is set to acquire omnichannel nail care brand Olive & June for $240 million as part of the company’s strategic goal of pursuing mergers and acquisitions.

While the company focuses on its health portfolio, Olive & June plans to operate in a stand-alone but supported model that retains its management team.

The acquisition is valued at $225 million in cash at closing, with a potential $15 million earnout based on performance over the next three years. It is projected to immediately contribute to Helen of Troy’s revenue growth, profitability, and cash flow, generating around $92 million in net sales revenue this year.

“We see significant opportunities to build on its strengths in consumer obsession and breakthrough commercial and product innovation, in addition to helping expand the brand’s availability with increased distribution,” said Noel M Geoffroy, CEO of Helen of Troy.

“Together, we will continue to innovate, inspire, and deliver on our promise to be the go-to at-home nail solution for everyone, everywhere. I cannot wait to see all that we will accomplish together,” said Sarah Gibson Tuttle, founder and CEO of Olive & June.

The deal is expected to close before the end of this year, pending customary closing conditions and regulatory approvals.

Further reading: UK luxury nail spa chain set to make US debut in Beverly Hills