Cosmetics distributor Revlon (REV) has signed an agreement to acquire privately held beauty company The Colomer Group, which sells hair dye and other products to beauty salons.
The companies expect the acquisition to close during the fourth quarter of 2013 for a cash purchase price of $660 million. Revlon is acquiring The Colomer Group from CVC Capital Partners, a private equity firm that has owned the company for 13 years.
The Colomer Group has held a long-term agreement with Revlon to market and sell Revlon Professional hair care products to salons and other professional channels. Revlon President and Chief Executive Officer Alan Ennis was quoted in the company press release as saying he believes the new acquisition will be beneficial to cash flow and earnings in the first year and also broadens the company's reach in the professional hair care industry.
"TCG's presence in the professional salon channel," Ennis said, "which Revlon currently does not serve, will expand our product offering and enable us to reach new consumers."
The transaction reunites Revlon with its former professional products division, which the beauty products company sold to CVC Capital Partners in 2000 for about $315 million. In addition to Revlon products, Colomer Group also sells shampoos, conditioners and other hair products to consumers under the Creme of Nature brand and also sells nail polish and body lotions. About half its sales are in Europe, the Middle East and Africa, while 40% come from the U.S.
-- Material from The Associated Press was used in this report.
