Revlon Buys Elizabeth Arden for $870 Million

9 years ago - Published in Finance, Fundamental Analysis

Marriage in the beauty products industry: Revlon buys Elizabeth Arden for 870 million dollars, in an all-cash transaction. Revlon will pay $ 14 for each share of Elizabeth Arden, offering a 50% premium over the closing price of $ 9.31 per share of Elizabeth Arden. A big company is born in the beauty industry, which has already obtained the approval of the boards of both companies.

With the union of the two brands, Revlon expands its global presence and strengthened in all categories related to beauty, from creams to perfumes. "Revlon is aimed at strengthening the Elizabeth Arden brand. By combining our brands we will give our company a significant presence in all areas and will accelerate sales growth in existing and new geographic areas," said the CEO of Revlon, Fabian Garcia.

The synergies are estimated at $ 140 million, also will proceed to the optimization of manufacturing and distribution networks. Bofa Merrill Lynch and Citigroup have agreed to a loan of 2.6 billion dollars to facilitate the acquisition and refinance the existing debt of Elizabeth Arden. The new company will rely on total sales of $ 3 billion.