Revlon to Acquire Elizabeth Arden for $870 Million

Posted on June 21, 2016

Revlon and Elizabeth Arden have signed a definitive merger agreement. Under the agreement Revlon will acquire all outstanding shares of Elizabeth Arden for $14 per share in cash. This make the deal valued at $870 million. BofA Merrill Lynch and Citigroup Global Markets Inc. are helping to finance the deal and refinance Elizabeth Arden's existing debt.

Revlon President and CEO Fabian Garcia says in the announcement, "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."

Revlon says its brand portfolio is "highly complementary" with Elizabeth Arden. There is some duplication in manufacturing and distribution networks that will be eliminated. Revlon says it will be better positioned to compete globally following the acquisition.

The deal also includes the Elizabeth Arden fragrance business that includes deals with Taylor Swift and Britney Spears. Bloomberg reports that the companies believe the combination will enable it to attract new perfume licenses and grow revenues.

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