Worthington Enterprises Acquires HALO Products Brand
Worthington Enterprises, Inc. (NYSE: WOR) has announced the addition of HALO-branded pizza ovens, pellet grills, griddles, and accessories to its outdoor living products portfolio. This move is aimed at catering to the increasing demand for high-quality food and innovative outdoor culinary experiences. The acquisition expands the company's presence in the outdoor living segment and is expected to leverage its ecommerce platform, marketing infrastructure, and retail partnerships to grow the HALO brand. HALO, an asset-light business, generated net revenue of $7 million in 2023 and is known for its technology-enabled solutions catering to changing cooking and gathering trends. Worthington Enterprises is acquiring an 80 percent ownership stake in HALO Products Group's affiliate, based in Elizabethtown, Kentucky.
Worthington Enterprises' addition of HALO-branded outdoor cooking products to its portfolio represents a strategic move to capitalize on the growing outdoor living market. This market has seen increased consumer spending, particularly as home and lifestyle trends evolve post-pandemic. By integrating innovative products that offer enhanced portability and technology features such as wireless connectivity and app-based controls, the company is positioning itself to meet the modern consumer's demand for convenience and quality in outdoor cooking experiences.
The acquisition could potentially lead to cross-selling opportunities with Worthington's existing outdoor living brands. The synergy between HALO's products and Worthington's ecommerce and retail infrastructure is expected to drive brand growth. However, it's important to monitor the integration process for any execution risks and to ensure that the anticipated benefits are realized without diluting the brand value of either HALO or Worthington's existing products.
With HALO Products Group generating net revenue of $7 million in 2023, the transaction involving an 80 percent ownership stake by Worthington Enterprises could be significant for both parties. For Worthington, the acquisition is likely to be accretive to earnings, given HALO's asset-light and technology-enabled business model that aligns with consumer trends. The financial impact will depend on the purchase price, the cost of capital and the ability to scale HALO's sales through Worthington's channels.
Investors should consider the implications of this acquisition on Worthington's balance sheet and cash flows. The initial capital outlay and subsequent investments in product development and marketing will need to be weighed against the expected incremental revenue and long-term strategic value. Furthermore, the market will be looking for updates on revenue growth and margin profiles post-acquisition to assess the deal's success.
The acquisition reflects a keen awareness of changing consumer behaviors, particularly the increased interest in outdoor living and cooking. HALO's focus on portable, high-tech cooking solutions taps into the consumer desire for products that support a flexible, social lifestyle. The success of such products often relies on their ability to resonate with consumer values, such as the pursuit of quality experiences and the integration of technology into everyday life.
Worthington's ability to enhance the HALO brand through its established marketing and retail partnerships will be critical in reaching a broader audience. It will be important to track consumer responses to the expanded product offerings and the effectiveness of marketing strategies in driving HALO's market penetration and customer loyalty.
02/01/2024 - 04:15 PM
COLUMBUS, Ohio, Feb. 01, 2024 (GLOBE NEWSWIRE) -- Worthington Enterprises, Inc. (NYSE: WOR), a designer and manufacturer of market-leading brands that help enable people to live safer, healthier and more expressive lives, today announced it is adding HALO™-branded pizza ovens, pellet grills, griddles and accessories
As consumers increasingly seek new ways to elevate outdoor experiences, easy-to-prepare, high-quality food is a differentiator that can transform the experience, according to Steve Caravati, president, Consumer Products, Worthington Enterprises
“HALO’s innovative pizza ovens, pellet grills and griddles are disrupting the outdoor culinary experience,” said Caravati. “HALO, combined with our other leading outdoor living brands such as Coleman portable propane tanks and Bernzomatic torches, fuel and accessories, are a natural match and powerful combination. This acquisition expands our presence in the attractive outdoor living segment. We look forward to leveraging our ecommerce platform, robust marketing infrastructure and retail partnerships to help grow the HALO brand.”
Michael Giebel, co-founder and chief executive officer, HALO Products Group, will be chief product development officer for the HALO product line.
Giebel said, “I am excited for our team to now be part of a larger consumer brands company that is strategically capitalizing on growth opportunities in the outdoor living segment. I believe that Worthington’s experience and relationships in the outdoor market – paired with its people-first culture – will accelerate the HALO brand faster than we could on our own. I am personally eager to focus on my passion of product innovation.”
HALO is an innovative, asset-light, niche business with technology-enabled solutions catering to the changing trends of how people cook, gather and enjoy. Several of HALO’s products are designed for increased portability and can connect via wireless network or Bluetooth for mobile app-based control of cook time, grill temperature and other performance-related functions.
As a result of the transaction, Worthington Enterprises is acquiring an 80 percent ownership stake in an affiliate of HALO Products Group. HALO, which is based in Elizabethtown, Kentucky, and employs approximately 25 people, generated net revenue of $7 million in 2023. Giebel, along with Paul Simon and Richard Fan, founded the business in 2020 with a vision to “rise above” market standards with superior products and customer experiences.
About Worthington Enterprises
Headquartered in Columbus, Ohio, Worthington Enterprises employs approximately 5,000 people throughout North America and Europe.
Founded in 1955 as Worthington Industries, Worthington Enterprises follows a people-first Philosophy with earning money for its shareholders as its first corporate goal. Worthington Enterprises achieves this outcome by empowering its employees to innovate, thrive and grow with leading brands in attractive markets that improve everyday life. The Company engages deeply with local communities where it has operations through volunteer efforts and The Worthington Companies Foundation workforce development programs corporate citizenship and sustainability efforts worthingtonenterprises.com
Forward-Looking Statements
Sonya L. Higginbotham
Marcus A. Rogier
200 Old Wilson Bridge Rd.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/97e3ad40-d518-4217-b2dc-55f74ecd590a
What is Worthington Enterprises, Inc.'s ticker symbol?
Worthington Enterprises, Inc.'s ticker symbol is WOR.
What products are being added to Worthington Enterprises, Inc.'s outdoor living products portfolio?
HALO-branded pizza ovens, pellet grills, griddles, and accessories are being added to Worthington Enterprises, Inc.'s outdoor living products portfolio.
What was HALO's net revenue in 2023?
HALO generated net revenue of $7 million in 2023.
Where is HALO Products Group based?
HALO Products Group is based in Elizabethtown, Kentucky.
What percentage ownership stake is Worthington Enterprises acquiring in HALO Products Group's affiliate?
Worthington Enterprises is acquiring an 80 percent ownership stake in HALO Products Group's affiliate.
