REVLON WILL SELL PLUSBELLE BRAND
Byline: Thomas Cunningham
NEW YORK — As part of an ongoing effort to trim non-core operations, Revlon said Wednesday it will sell its Argentine brand, Plusbelle, to a subsidiary of Dial Corp. for $46.5 million in cash.
The Plusbelle line of value-priced shampoo and conditioners is the volume leader in Argentina’s $500 million hair care market, Mal Jozoff, Dial chairman and chief executive, said in a statement.
A Revlon spokesman declined to give sales for Plusbelle.
Under the definitive agreement, which is subject to a number of conditions, Dial’s Argentine subsidiary Nuevo Federal S.A. will purchase the Revlon subsidiary that operates Plusbelle. The transaction, which should close early in May, also includes a manufacturing facility in Garin, Argentina.
“The disposition of this non-core brand is another step in our previously announced plan to achieve greater focus on our core businesses and to reduce debt,” Jeffrey M. Nugent, Revlon president and chief executive, said in a statement.
“We will apply a portion of the net proceeds to reduce the commitment under our worldwide credit agreement and the balance will be available for general corporate purposes.”
Revlon is in discussions to sell its remaining Latin American brands, Colorama, Juvena and Bozzano, according to the spokesman.
As part of the restructuring plan, Revlon also said in February it would sell its worldwide professional products business to an investor group led by Carlos Colomer, who formerly ran the division for Revlon.
Dial, based in Scottsdale, Ariz., makes Dial soaps, and the Sarah Michaels, Freeman Cosmetics and Nature’s Accents personal care brands. Revlon’s brands include Revlon, Almay, Ultima II, Charlie and Flex.
On the New York Stock Exchange, Revlon picked up 1/4 to close at 9 1/8; Dial rose 3/16 to close at 12 13/16.