USA: Revlon to acquire Elizabeth Arden in $870 million deal
US-based cosmetics firm Revlon has announced that it has signed a definitive agreement to acquire all of the outstanding shares of Elizabeth Arden for $14.00 per share in cash, representing an approximate enterprise value for Elizabeth Arden of $870 million.
By bringing together two "highly complementary, iconic brand portfolios", Revlon said it would benefit from greater scale, an expanded global footprint, and a significant presence across all major beauty channels and categories, including the addition of Elizabeth Arden’s growing prestige skin care, colour cosmetics and fragrances. The combination would leverage Revlon’s scale across major vendors and manufacturing partners, improving distribution and procurement, the firm added.
As a result of the deal, Revlon said cost synergies of approximately $140 million were expected to be achieved.
Commenting on the purchase, Revlon president and CEO Fabian Garcia said: "This acquisition is strategically and financially compelling. Elizabeth Arden and Revlon are both known for their iconic brands, entrepreneurial spirit and commitment to innovation, quality and excellence. Revlon plans to build upon Elizabeth Arden’s ongoing transformation by further enhancing the brand, with even more vibrant and relevant product development and marketing, while carefully preserving its unique heritage within prestige. Combining our brands, talent, and global distribution will give our company a significant presence in all major channels and categories, while accelerating sales growth in existing and new geographic regions. We look forward to bringing together our two top-notch teams to form a global leader in beauty".