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NEW YORK (
The Deal) -- Beauty products giant
Revlon(REV - Get Report) 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.