Revlon to buy peer Elizabeth Arden for US$419m

New York

REVLON Inc will acquire Elizabeth Arden Inc for about US$419 million, a wager that uniting two ageing cosmetics giants can reinvigorate both companies' brands.

The US$14-a-share deal values Elizabeth Arden at about US$870 million when debt is included, New York-based Revlon said on Thursday. The cash transaction represents a 50 per cent premium over Elizabeth Arden's closing price of US$9.31.

Revlon, controlled by billionaire Ron Perelman, sees an opportunity to revive the fortunes of Elizabeth Arden, an unprofitable company whose celebrity-branded fragrances have lost favour with consumers. The merger will bring together the 84-year-old Revlon with the 106-year-old Arden business in the hopes that a combined distribution network and marketing strategy can broaden their appeal. "We see great opportun…