Playtex acquires Hawaiian Tropic
In an attempt to beef up its existing skin care product revenue, Playtex Products announced the acquisition of Tiki Hut Holding Company, owner of tanning lotion and skin care manufacturer Hawaiian Tropic, according to the company
Hawaiian Tropic touts itself as one of the best-known brands in the sun care segment in the United States and key markets around the world.
Westport, Conn.-based Playtex purchased the company stock for $83 million in hopes that it will bring in annual synergies of about $11 million.
With Hawaiian Tropic net sales exceeding $110 million in 2006, Playtex anticipates a 24 percent revenue increase in its skin care division by fiscal 2009.
Playtex manufactures and markets feminine, skin and infant care products. Its brands include Playtex tampons, Wet Ones towelettes, Banana Boat sun care products and Playtex baby bottles and cups. Playtex is also the manufacturer of Diaper Genie diaper disposal machines.
Hawaiian Tropic products include tanning lotions and overall sun protection for babies, kids and adults. Skin care products also include sunless tanning treatment, after-sunburn relief cream and lip balm. The Ormond Beach, Fla.-based company also produces private label sun care products.
In 2006, about 20 percent of Playtex
's sales come from North America.
Playtex spokesperson Laura Kiernan told WinmoEdge that the company needed an international infrastructure to grow its existing skin care brands, and that this acquisition will help them accelerate that process. Because Hawaiian Tropic is growing internationally, Playtex plans to grow along with them.
“We’ll be able to leverage their existing grounds and distribution network,” Kiernan said. “(Hawaiian Tropic is) a growing, thriving business and we’re going to work over the next several months, to integrate this business into ours.”
When asked about the company’s future marketing plans, Kiernan said that because the acquisition is so new, Playtex has not made any decisions. She said that the company will have to look carefully at the business and see what executives think are the appropriate actions, but so far, a marketing team has not been put in place for Hawaiian Tropic.
According to The List database, New York-based Grey Worldwide has served as Playtex’s creative agency of record since 1968.
According to Nielsen Monitor-Plus, the company spent approximately $62.4 million on national advertising in 2005. $28.8 million was spent on national magazine ads, $14.2 million was spent on network television ads and $12.8 million was spent on cable television.
Playtex is using Hawaiian Tropic’s internationally recognized brand to promote its skin care line on a global scale. Although no decisions have officially been made yet, there could be an opportunity for interested agencies with international experience and capabilities to pitch ideas that will not only boost Playtex’s sales, but also Hawaiian Tropic’s. Come prepared with new advertising techniques that promote the skin care products to a universal audience and also keep in mind the many cross-promotional opportunities as well – cruise lines, sponsorship for summer camps or programs for kids, etc.
Playtex Products, Inc.
300 Nyala Farm Road
Westport, CT 06880
Chairman, President & Chief Executive Officer
Vice President of Marketing, Sun Care
Senior Vice President, Marketing & General Manager