Revlon set to buy Elizabeth Arden in $870m deal
Cosmetics maker Revlon is set to snap up perfume maker Elizabeth Arden for a whopping $870m (£610m).
Elizabeth Arden shares jumped nearly 49 per cent to $13.85 in extended trading on Thursday after the news of the deal broke while Revlon shares rose slightly to $31.30.
The deal has an equity value of $419m, based on Elizabeth Arden's total outstanding shares as of May 3, Reuters said.
Revlon chief executive officer Fabian Garcia said in the statement: “Revlon plans to build upon Elizabeth Arden’s ongoing transformation by further enhancing the brand. Combining our brands, talent and global distribution will give our company a significant presence in all major channels and categories, while accelerating sales growth in existing and new geographic regions.”
Bank of America and Citigroup have agreed to stump up $2.6bn for financing the deal.