BEAUTY CARE

Revlon looks to reduce debt

BY Antoinette Alexander

NEW YORK Beauty company Revlon is looking to reduce its debt by $170 million by using proceeds from the sale of the Bozzano business in Brazil and proceeds from an equity rights offering that will launch as early as the fourth quarter of 2008.

“By repaying the [MacAndrews & Forbes] Term Loan, we will eliminate our highest cost, nearest maturity debt, which carries an annual cash interest cost of almost $19 million. Improving our capital structure with this important step is consistent with a key aspect of our strategy,” stated David Kennedy, Revlon president and chief executive officer.

To repay the $170 million loan, which matures Aug. 1, 2009, Revlon will use $63 million of the net proceeds from the previously announced sale of its Bozzano business in Brazil. The remaining $30 million or so of net cash proceeds from the July 2008 sales will be used for general corporate purposes.

In a second step, Revlon plans to launch, as early as in the fourth quarter of 2008, a $107 million equity rights offering that would enable stockholders to purchase additional shares of Revlon Class A common stock.

Revlon intends to effect is previously announced 1-for-10 reverse stock split of its Class A and Class B common stock on Sept. 15, 2008, and open for trading on the New York Stock Exchange on a post-split basis on Sept.16, 2008.

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BEAUTY CARE

Beiersdorf to launch men’s hair care line

BY Antoinette Alexander

HAMBURG, Germany Beiersdorf has announced that it will launch in September a hair care line for men.

The new Nivea For Men Hair Recharge with Shampoo and Tonic will launch this year in 11 European countries, including Germany, Austria, France, Italy, Belgium and the Baltic States. In 2009, Poland, Russia, Ukraine and the Middle East will follow.

The products feature of combination of carnitine and creatine, which is designed to stimulate the metabolism of hair follicles and hair roots.

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Natural/organic products take spotlight in baby care at ECRM event

BY Antoinette Alexander

MARCO ISLAND, Fla. If the ECRM Personal Care, Baby & Oral Care EPPS event is an indication of what shoppers will soon see on retail shelves then it is clear that the natural and organic trend shows little signs of slowing—especially in the baby care aisle.

The event was held here Aug. 25 to 28 at the Marco Island Marriott Resort.

Natural and organic products, especially within the baby care segment, took the spotlight as new mothers and mothers-to-be grow increasingly concerned with what they put on their skin when they are pregnant and on the skin of their newborn child.

Some of the companies that met with retail buyers in hopes of hitting mass market shelves include Annyer USA. This European company is looking to enter the U.S. market with its Marinela skin care line. The line, which is 100 percent natural, is designed for mothers and mothers-to-be.

Direxions Inc. was at the show highlighting its Otopia organic skin care line for newborns, babies and mom. First introduced in Australia and into the U.S. market in September 2007, the company is now looking to expand U.S. distribution of the 16-SKU line.

Also, as previously reported online by Drug Store News, Lafe’s Natural Bodycare has launched a new line of Lafe’s Organic Baby products that includes baby shampoo and body wash, massage oil, baby lotion and mother-to-be deodorant. The products, which were highlighted at ECRM, are certified organic by the U.S. Department of Agriculture, earning the USDA’s green seal indicating the ingredients are 95 percent certified organic. They are also packaged in what Lafe’s is terming “baby-safe plastic,” meaning they are free of estrogenic activity (EA) chemicals that, according to some research, could trigger endocrine disruption. Lafe’s Organic Baby will also be introducing sunscreen, diaper cream, and baby wipes later this year.

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