Revlon to acquire Elizabeth Arden for US$870 million

Revlon to acquire Elizabeth Arden for US$870 million

Revlon has announced its intention to acquire Elizabeth Arden for US$14 per share in an all-cash deal valued at US$870 million. The news was announced in a joint Investor Call timed for the markets’ close on Friday.

The deal would see the mass market make-up specialist acquire a sizeable premium portfolio, as well as an established fragrance business, which includes popular celebrity scents by Justin Bieber, Taylor Swift and Nicki Minaj, while Arden would gain access to a number of new markets, including Latin America.

Fabian Garcia, President and Chief Executive Officer of Revlon, Inc., 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.”

The merger would place Revlon among the 20 largest beauty companies in the world, and bring annual sales to US$3 billion.

E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden, said, “We believe this is a compelling transaction that delivers certain value to our shareholders, while recognizing the unique equity in the Elizabeth Arden brand, our impressive fragrance portfolio and global footprint, as well as the positive momentum and growth potential for our business. We look forward to working with the Revlon leadership team to create a leading global beauty company, able to provide accelerated growth for the Elizabeth Arden-branded products as well as our prestige licensed fragrance portfolio, and broader opportunities for many of our employees.”

The deal is expected to close in the latter half of the year, subject to regulatory checks, with Beattie joining Revlon’s board as Non-Executive Vice Chairman and Senior Advisor to Revlon President and CEO Fabian Garcia.

 

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