NEW YORK — Revlon is looking to acquire from CVC Capital Partners the beauty company Colomer Group for $660 million, a move that will enable Revlon to expand into the professional salon market.
The acquisition, which is subject to certain customary conditions and regulatory approvals, is expected to close in the fourth quarter of 2013. Revlon expects to finance the acquisition using funds underwritten by Citigroup Global Markets.
According to Revlon, Colomer Group strategically complements Revlon, as it markets and sells professional products to salons and other professional channels under brands such as Revlon Professional hair care, which it currently licenses from the company under a long-term agreement; Creative Nail professional nail polish, including its Shellac franchise; and American Crew men’s hair care. It also sells certain brands directly into retail channels, including Natural Honey body lotions and Llongueras hair care, and operates a multi-cultural hair care business under the Crème of Nature brand.
Approximately 50% of Colomer Group’s sales are in Europe, Middle East and Africa, with 40% in the United States, and the balance in the rest of the world.
“This acquisition, which we expect to be accretive to cash flow and earnings in the first year, represents a significant and logical strategic step forward for Revlon as it complements our core business, expands our distribution into new channels, and provides meaningful cost synergy opportunities. TCG’s presence in the professional salon channel, which Revlon currently does not serve, will expand our product offering and enable us to reach new consumers. We plan to capitalize on TCG’s extensive geographic and channel distribution, and leverage our collective innovation capability and leadership as we seek to drive growth across our expanded portfolio of brands,” stated Revlon president and CEO Alan T. Ennis.