NEW YORK (TheStreet) -- Shares of Elizabeth Arden, Inc. (RDEN) are up 5.56% to $18.24 in midday trading as the company announced that investment funds affiliated with Rhone Capital L.L.C. commenced a partial tender offer to acquire up to 6,442,013 shares of its outstanding common stock, or 20% of such outstanding common stock.
Rhone Capital L.L.C. offered a cash purchase price of $17 per share.
Shares of Elizabeth Arden closed at $15.05 on August 19, its lowest in nearly three years, as the company reported a decline in sales for the three months ended June 30 of -28% to $191.7 million due to slumping celebrity fragrance orders.
Elizabeth Arden's brand portfolio includes skincare, color and fragrance products as well as celebrity fragrance brands such as Britney Spears, Justin Bieber, and Taylor Swift.
Separately, TheStreet Ratings team rates ELIZABETH ARDEN INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ELIZABETH ARDEN INC (RDEN) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."