Revlon to acquire Elizabeth Arden for $870 million
NEW YORK — Revlon announced late Thursday that it would buy Elizabeth Arden for $14 per share in cash, or about $870 million.
Revlon said bringing together the two firms will help it benefit from greater scale, an expanded global footprint, and a significant presence across all major beauty channels and categories, including the addition of Elizabeth Arden’s growing prestige skin care, color cosmetics and fragrances.
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 to be achieved through the elimination of duplicative activities, leveraging purchasing scale, and optimizing the manufacturing and distribution networks of the combined company. The companies anticipate that they will achieve additional growth opportunities in both sales channels and geographies.
“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," said Fabian Garcia, president and CEO of Revlon, Inc. "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.”
Under the terms of the agreement, Revlon will acquire all of the outstanding shares of Elizabeth Arden for $14.00 per share in cash, which represents a 50% premium over Elizabeth Arden’s closing share price of $9.31 on June 16, 2016. The transaction, including repayment of Elizabeth Arden debt and preferred stock, implies an enterprise value for Elizabeth Arden of approximately $870 million.
“We believe this is a compelling transaction that delivers certain value to our shareholders, while recognizing 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," said E. Scott Beattie, chairman, president and CEO of Elizabeth Arden. "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.”
Scott Beattie says he is committed to executing on Elizabeth Arden’s business plans and it is expected that he will join Revlon’s Board of Directors as non-executive Vice Chairman. He will also serve as a senior advisor to Fabian Garcia, Revlon’s President and CEO, to ensure a successful integration and transition. The transaction has been unanimously approved by both Revlon’s and Elizabeth Arden’s Boards of Directors.
Revlon and Elizabeth Arden expect the transaction, which is subject to approval by Elizabeth Arden’s shareholders and regulatory clearances, as well as the satisfaction of customary closing conditions, to close by the end of 2016.
Cetaphil rolls out product display at CVS honoring Camp Wonder
FORT WORTH, Texas — Galderma, the makers of Cetaphil, is unveiling a limited-edition product display in partnership with the Children's Skin Disease Foundation (CSDF) and Camp Wonder, an initiative of the CSDF at 1,500 CVS stores.
As part of the brand's five year partnership with the Camp Wonder program, Cetaphil Moisturizing Cream is being showcased exclusively at 1,500 CVS Pharmacy locations nationwide through June, honoring the memory of Camp Wonder camper, Samantha "Sammie" Smith.
"It is very special to all of us at Galderma to see the Camp Wonder limited-edition display featuring Sammie's artwork at CVS Pharmacy locations for another year in a row. Throughout our five years in partnership, Galderma and the Cetaphil brand have raised over $700,000 to help support the Camp, which is made possible through partners like CVS Pharmacy," said Miles Harrison, president and general manager of Galderma for North America. "It is our plan to support the CSDF and Camp Wonder for years to come and continue to bring awareness to children suffering from life-threatening skin diseases through the purchase of our limited-edition product."
Camp Wonder is a medically-staffed summer program that invites nearly 100 children ages seven to 16 who suffer from severe and fatal skin diseases to experience a week away from bullies, mean stares and that isolating feeling of being different. Instead, children get to experience the joys of being a kid at summer camp just like so many others across the country. The week-long camp is funded by the CSDF, an organization founded in May 2000 by Francesca Tenconi. As an adolescent, Francesca suffered from a potentially life threatening skin disease and missed out on normal childhood activities. She wanted to use her experience to help others, so on her 16th birthday she asked friends and family to forgo gifts and help her create the CSDF. Since then, the work of Francesca has touched the lives of hundreds of children and families, including Sammie's.
The Cetaphil Moisturizing Cream, $15.99 (16 oz.), will be on display through June at CVS/pharmacy locations nationwide.
WSJ: Birchbox suspends plans for physical stores
Popular beauty-box company Birchbox is suspending its plans to open physical stores as the retailer tells The Wall Street Journal that an increase in competition and a chill in venture capital has left it short on cash. (The Wall Street Journal)