Revlon to Buy Elizabeth Arden

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Revlon to Buy Elizabeth Arden

By CGT Staff - 06/17/2016
Revlon Inc. agreed to buy rival Elizabeth Arden Inc. in a $420 million all-cash deal, which will expand Revlon’s presence in categories such as skin care and perfume.

Combined annual sales are expected to be roughly $3 billion. The deal also will help Revlon refinance its heavy debt load. Revlon said it would pay $14 a share for Elizabeth Arden, a 50% premium to the company’s closing stock price. The company will use $2.6 billion of new financing commitments from BofA Merrill Lynch and Citigroup to fund the purchase and to refinance Arden’s existing debt, as well as much of Revlon’s $1.8 billion in long-term debt.

Revlon said it expects the deal to produce $140 million in savings over three to five years. Revlon forecast its 2016 sales to be between $2 billion and $2.1 billion, excluding the acquisition and impact of currency fluctuations.

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