Ron Perelman will throw more good money after
, hoping to keep the struggling cosmetics giant afloat long enough for its long-awaited turnaround plan to kick in.
MacAndrews & Forbes
will pump another $125 million into the makeup company on terms that are nearly identical to those on a $100 million infusion made last year. Perelman controls both companies.
"My interest is in creating long-term and sustainable value, and I believe Revlon, with its great brands, strong leadership team, reversal of market share declines and stabilizing sales, is making substantial progress towards that end," Perelman said. "This investment will provide Revlon with the resources to continue to strengthen the business and its underlying profitability for the long-term."
It better. The company said on Oct. 30 its third quarter loss swelled to $54.7 million, or 78 cents per share, from a loss of $22.1 million, or 41 cents a share, a year ago. Sales fell about 2% to $316.5 million, while North American sales plunged 9%. Revlon has long said its focus is on market share gains, and claimed progress in "mass market color cosmetics" in the release announcing Perelman's investment.
As of late October, Revlon had used up $248 million of a $250 million bank credit agreement and all of last year's $100 million MacAndrews & Forbes term loan. It had about $45 million left on an additional line of credit.
The new money will be unsecured loans made to Revlon Consumer Products Corp., a Revlon unit.
The shares closed Thursday at $2.32, up 5 cents, or 2.2%.