What's old is new again. Revlon is buying The Colomer Group (TCG), which sells hair dye and other products for beauty salons, for about $660 million, saying the deal will help it reach new salon customers and cut costs. The acquisition reunites Revlon with its one-time unit in an effort to expand its global distribution.
New York-based Revlon will buy the business from 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.
“This acquisition, which we expect to be accretive to cash flow and earnings in the first year, 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," said Revlon President and Chief Executive Officer, Alan T. Ennis. "TCG’s presence in the professional salon channel, which Revlon currently does not serve, will expand our product offering and enable us to reach new consumers. We plan to capitalize on TCG’s extensive geographic and channel distribution, and leverage our collective innovation capability and leadership as we seek to drive growth across our expanded portfolio of brands.”
Colomer markets products under brands such as Revlon Professional hair care. About half of its sales are in Europe, the Middle East and Africa, while 40% come from the US. Revlon Inc. said Monday that it's buying Colomer, which is based in Spain, from private equity firm CVC Capital Partners. The deal is expected to close in the last three months of the year.
The New York company sells Revlon and Almay makeup, Revlon ColorSilk hair dye and other beauty products.