Revlon Inc. has completed the acquisition of Elizabeth Arden.
According to Revlon, the combined company will continue to operate with Revlon as the parent firm and will continue to be listed on the New York Stock Exchange under the ticker symbol “REV.” With the transaction closed, shares of Elizabeth Arden are no longer listed on the Nasdaq exchange.
Fabian Garcia, president and chief executive officer of the newly combined company, said, “The combination of two iconic companies creates a multibrand, global beauty enterprise and tremendous opportunity for long-term growth and value creation.”
Garcia also said the company expects to benefit from greater scale, an expanded global footprint and significant presence across all major beauty categories and channels. He noted that the combined organization has net sales of $3 billion and that there’s far greater upside as a combined firm than “either company would have realized on a stand-alone basis.”
Garcia also thanked Scott Beattie, now the former chairman and chief executive officer of Elizabeth Arden for his leadership during the transition. Beattie is expected to join the Revlon board of directors as a non-executive vice chairman. Beattie will also serve as advisor to Garcia. The interim organizational structure has the rest of the Elizabeth Arden team reporting directly to Garcia.
Revlon agreed to acquire Elizabeth Arden for $14.00 a share in June, a transaction that represents an enterprise value of $870 million for the acquired beauty firm. The combined firm counts as its portfolio of brands Revlon, Elizabeth Arden, Revlon ColorSilk, American Crew and designer, heritage and celebrity fragrance brands such as Juicy Couture, John Varvatos, Elizabeth Taylor, Giorgio Beverly Hills and Jennifer Aniston, to name a few.
In connection with the acquisition, Revlon has a new $1.8 billion senior secured-term loan facility, and a new $400 million senior secured asset-based revolving credit facility. Revlon had previously closed on a private offering of $450 million aggregate principal amount of 6.25 percent senior unsecured notes due 2024, and the proceeds were released from escrow with the closure of the Elizabeth Arden transaction. The funds, along with the new financing, were used in part for the acquisition and refinance of its previously existing term loan and asset-based revolving credit facilities, as well as all of Elizabeth Arden’s indebtedness, Revlon said.