Supplier News Breaks
Revlon to acquire The Colomer Group
August 5th, 2013
NEW YORK – Revlon Inc. plans to buy The Colomer Group (TCG), a beauty care company focused on the professional salon channel, in a $660 million cash deal.
Revlon said Monday that it expects to close the transaction in the fourth quarter, pending customary closing conditions and regulatory approvals. TCG is being acquired from funds advised by CVC Capital Partners, which have owned TCG for the past 13 years.
TCG markets and sells professional products to salons and other professional channels under brands such as Revlon Professional hair care, which it currently licenses from the company under a long-term agreement; Creative Nail professional nail polish, including its the Shellac franchise; and American Crew men's hair care.
TCG also sells certain brands directly into retail channels, including Natural Honey body lotions and Llongueras hair care, and it operates a multicultural hair care business under the Crème of Nature brand.
"This acquisition, which we expect to be accretive to cash flow and earnings in the first year, represents a significant and logical strategic step forward for Revlon as it complements our core business, expands our distribution into new channels and provides meaningful cost synergy opportunities," Revlon president and chief executive officer Alan Ennis stated. "TCG's presence in the professional salon channel, which Revlon currently does not serve, will expand our product offering and enable us to reach new consumers. We plan to capitalize on TCG's extensive geographic and channel distribution and leverage our collective innovation capability and leadership as we seek to drive growth across our expanded portfolio of brands."
About half of TCGs sales are in Europe, Middle East and Africa, with 40% in the United States and the balance in the rest of the world.
"I am delighted that we are joining the Revlon family," commented Lorenzo Delpani, CEO of TCG. "My leadership team and the entire Colomer organization are very proud of our accomplishments in building our business, and we look forward to working with Revlon and continuing the positive momentum of our company."
Revlon's global brand roster includes Revlon, Almay color cosmetics, Almay, SinfulColors and Pure Ice color cosmetics; Revlon ColorSilk hair color; Revlon beauty tools; Charlie fragrances; Mitchum antiperspirant deodorant; and Ultima II and Gatineau skin care.
"Revlon will work collaboratively with the TCG organization to ensure a smooth transition and integration of the collective business," Ennis added. "Lorenzo and his leadership team will play a key role in the integration and with respect to the continued success of TCG's business. This is a tremendous opportunity to both reunite the Revlon brand name and for Revlon to continue to drive profitable growth."
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