Revlon to acquire Elizabeth Arden for $870m in all-cash transaction

revlon-logo_0Two of the beauty world’s most iconic brands – both with a strong presence in travel retail — are joining forces. Revlon, Inc. and Elizabeth Arden, Inc. announced last week that they have signed a deal for Revlon to acquire Elizabeth Arden for $14.00 per share in cash, representing an enterprise value for Elizabeth Arden of approximately $870 million. The purchase price represents a 50% premium over Elizabeth Arden’s closing share price of $9.31 on June 16, 2016.

With highly complementary brand portfolios, the deal will benefit Revlon with 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, color cosmetics and fragrances.

Digital-Arden(1)Elizabeth Arden’s strong global reach in prestige distribution and travel retail will complement Revlon’s strength in mass and salons, strongly positioning the combined company in all key beauty channels.

The company says it expects to achieve $140 million in cost synergies through the elimination of duplicative activities, leveraging purchasing scale, and optimizing the manufacturing and distribution networks of the combined company.

The deal, which will also help Revlon refinance its heavy debt load, comes six months after controlling shareholder and Chairman Ronald O. Perelman disclosed he was exploring strategic alternatives for Revlon.

E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden will join Revlon’s Board of Directors as non-executive Vice Chairman. He will also serve as a senior advisor to Fabian Garcia, Revlon’s President and CEO, to ensure a successful integration and transition. The transaction has been unanimously approved by both Revlon’s and Elizabeth Arden’s Boards of Directors and, subject to regulatory clearances, is expected to close by the end of 2016.

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