RHÔNE TO ADD TO ITS ELIZABETH ARDEN STAKE: Investment funds affiliated with Rhône Capital said Monday they plan to acquire an additional 6.4 million shares of Elizabeth Arden Inc., or 20 percent of the outstanding shares of common stock, at a cash purchase price of $17 a share via a tender offer that is expected to “occur promptly.” The investors on Aug. 19 acquired 50,000 shares of Arden’s Series A preferred stock and warrants to purchase nearly 2.5 million shares of the beauty firm’s common stock pursuant to a private placement. At the time, they stated their intention to increase their stake in the beauty firm.
Rhône and Arden have an agreement in place with standstill restrictions that cap the investment group’s stake at 30 percent of Arden. Under that agreement, Rhône also has the right to designate a member to Arden’s board, as well as add a second member under certain conditions. Shares of Arden ended Monday’s Nasdaq trading session unchanged at $16.92.
This story first appeared in the August 26, 2014 issue of WWD. Subscribe Today.