When Revlon’s $870 million acquisition of Elizabeth Arden closes, the combined company will generate about 31 percent of net sales from color cosmetics, according to a presentation the company filed with the U.S. Securities and Exchange Commission on Monday.
Fragrance will be the second-largest category, with 28 percent of sales, followed by hair care with 18 percent, beauty care with 10 percent, skin care with 7 percent and nail with 6 percent. The presentation also shed light on the combined businesses’ geographic footprint: 59 percent of sales will be from North America, 23 percent will come from Europe, the Middle East and Africa, 12 percent from Asia-Pacific and 5 percent from Latin America.
In the presentation, Revlon said it would continue to focus on fewer but better product innovations, including a new mascara line, new Ultra HD Matte Lipcolor line, ColorStay Foundation and Concealer 2-in-1 and new men’s beauty tools line. In hair, the business plans to focus on a new line of Buttercream Vivid Colors, and in personal care, it plans to focus on the Mitchum clinical gel and dry spray aerosol line.
Revlon unveiled in mid-June that it would buy Elizabeth Arden, which has struggled to regain profitability in recent years. The deal is expected to close before the end of 2016. Revlon chief executive officer Fabian Garcia previously said the transaction would put Revlon in the top 20 beauty companies globally. The business is projected to have $2.9 billion in annual sales and $517 million in annual adjusted earnings before interest, taxes, depreciation and amortization.
“This is an important acquisition on Revlon’s path to adapt to a changing landscape,” Revlon chairman Ronald Perelman told WWD. “Together with Elizabeth Arden, and building on Revlon’s momentum, our company will be better positioned to compete in all major beauty categories with more products and a broader global footprint.”
Back in January, Revlon’s majority shareholder MacAndrews & Forbes filed a note with the SEC saying it would consider strategic alternatives for the business. The Arden news followed a handful of c-suite changes, including the departure of former ceo Lorenzo Delpani, hire of Garcia and chief financial officer Juan Figuereo.