07.26.16
A new leading global beauty company may be on the rise. Revlon’s acquisition of Elizabeth Arden could even sideswipe some of the fanfare from Coty’s deal to take on dozens of P&G beauty brands this year.
Revlon, Inc. and Elizabeth Arden, Inc. have signed an agreement under which Revlon will acquire all of the outstanding shares of Elizabeth Arden for approximately $870 million.
By combining the two complementary brand portfolios, Revlon says it will benefit from greater scale, an expanded global footprint, and a large presence across all major beauty channels and categories, including the addition of Elizabeth Arden’s growing prestige skin care, color cosmetics and fragrance lines. The combination will leverage Revlon’s scale across major vendors and manufacturing partners, improving distribution and procurement. Cost synergies of approximately $140 million are expected via the elimination of duplicative activities, leveraging purchasing scale, and optimizing the manufacturing and distribution networks of the combined company. Arden and Revlon anticipate that they will achieve additional growth opportunities in both sales channels and geographies.
Revlon’s strength in color cosmetics, hair care, men’s grooming, antiperspirants, deodorants and beauty tools will be complemented by the addition of Elizabeth Arden’s portfolio of licensed prestige fragrances and Elizabeth Arden-branded prestige skin care, color cosmetics and fragrance products.
Arden’s global presence 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.
Revlon, Inc. and Elizabeth Arden, Inc. have signed an agreement under which Revlon will acquire all of the outstanding shares of Elizabeth Arden for approximately $870 million.
By combining the two complementary brand portfolios, Revlon says it will benefit from greater scale, an expanded global footprint, and a large presence across all major beauty channels and categories, including the addition of Elizabeth Arden’s growing prestige skin care, color cosmetics and fragrance lines. The combination will leverage Revlon’s scale across major vendors and manufacturing partners, improving distribution and procurement. Cost synergies of approximately $140 million are expected via the elimination of duplicative activities, leveraging purchasing scale, and optimizing the manufacturing and distribution networks of the combined company. Arden and Revlon anticipate that they will achieve additional growth opportunities in both sales channels and geographies.
Revlon’s strength in color cosmetics, hair care, men’s grooming, antiperspirants, deodorants and beauty tools will be complemented by the addition of Elizabeth Arden’s portfolio of licensed prestige fragrances and Elizabeth Arden-branded prestige skin care, color cosmetics and fragrance products.
Arden’s global presence 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.