Elizabeth Arden's Prevage City Smart + DNA Enzyme Complex + Antipollution + Antioxidants Broad Spectrum SPF 50 Hydrating Shield.

Elizabeth Arden's Prevage City Smart + DNA Enzyme Complex + Antipollution + Antioxidants Broad Spectrum SPF 50 Hydrating Shield.

Thomas Iannaccone

Revlon Inc. agreed to acquire Elizabeth Arden Inc. for $14 a share in cash, giving the firm an enterprise value of about $870 million.

Revlon said it would “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 deal would also give Revlon more heft while dealing with vendors and producers.

The company expects to realize cost synergies of about $140 million by “the elimination of duplicative activities, leveraging purchasing scale, and optimizing the manufacturing and distribution networks of the combined company.”

Fabian Garcia, president and chief executive officer of Revlon, said: “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. 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.”

E. Scott Beattie, chairman, president and ceo of Elizabeth Arden, said: “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. 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.”