Revlon to acquire Elizabeth Arden for around $870m

Revlon has signed a definitive agreement to acquire Elizabeth Arden for approximately $870m in cash.

It will purchase all of the outstanding shares of Elizabeth Arden for $14 per share.

Elizabeth Arden manufactures products in skin care, colour cosmetics and fragrances.

The acquisition will lead to cost synergies of around $140m.

Revlon CEO and president 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."

Elizabeth Arden chairman, president and CEO E. Scott Beattie said: "We believe this is a compelling transaction that delivers certain value to our shareholders, while recognising 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."

Revlon sells its products in around 130 countries. It sells colour cosmetics, hair care, men’s grooming products, antiperspirants, deodorants and beauty tools.

The deal is expected to close by end of this year.