This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

The Deal: Revlon Adds Colomer for $660M

NEW YORK (The Deal) -- Beauty products giant Revlon (REV) said Monday, August 5, it would acquire Colomer Group Spain  for $660 million, reuniting with its one-time unit in an effort to expand its global distribution.

New York-based Revlon will buy the business from funds advised by CVC Capital Partners, which acquired what was then known as Revlon Professional Products Worldwide in 2000 in a deal valued at $325 million. Colomer markets and sells Revlon professional hair care products under license.

Revlon said that the purchase would add hair care, lotions and nail polish brands and products to its arsenal and build its global reach. About 60% of Barcelona-based Colomer's sales come from outside of the United States, with the majority coming from Europe, the Middle East and Africa.

Significantly, Colomer would give Revlon access to the professional salon channel that the buyer does not currently serve.

Revlon CEO Alan T. Ennis said in a statement the deal "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."

Post-deal, Ennis said Colomer CEO Lorenzo Delpani "will play a key role" in the integration of the unit, calling the purchase "a tremendous opportunity to both reunite the Revlon brand name and for Revlon to continue to drive profitable growth."

Revlon said it would finance the deal using funds underwritten by Citigroup Global Markets The company said in a regulatory filing that Citi was providing a new $1.38 billion senior secured term loan facility and a $140 million asset-based revolving credit facility that would be used to fund the Colomer deal and refinance other debt.

This is Revlon's second acquisition in a little more than a year, following its July 2012 purchase of the trademark and intellectual property of Pure Ice nail enamel and Bon Bons cosmetics from Bari Cosmetics for an undisclosed amount.

Written by Lou Whiteman. 

Stock quotes in this article: REV 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,417.78 -7.07 -0.04%
S&P 500 1,862.38 +0.07 0.00%
NASDAQ 4,086.2160 -0.0090 -0.00%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs