What's old is new again. Years after selling off its Colomer unit, Revlon, Inc. has completed its previously-disclosed acquisition of The Colomer Group, including the Revlon Professional business, for a cash purchase price of $665 million. Revlon financed this acquisition with proceeds from the previously-disclosed $700 million upsizing of its bank term loan facility.
Colomer is a beauty care company with approximately $500 million in annual net sales that markets and sells professional products primarily to salons and other professional channels not currently served by Revlon. Key professional brands acquired as part of the transaction include Revlon Professional, Intercosmo, Orofluido and UniqOne hair care brands; CND nail polishes and enhancements, including the successful Shellac innovation; and American Crew men’s grooming range. TCG also sells certain brands directly into retail channels, including Natural Honey body lotions and Llonguerashair care, and operates a multi-cultural hair-care business under the Crème of Nature brand. This acquisition expands Revlon’s geographic scope with approximately 50% of the acquired business’s net sales in Europe, Middle East and Africa, and approximately 40% in the US.
“We are excited about the acquisition of TCG, which provides Revlon with broad brand, geographic and channel diversification. The acquisition substantially expands our business, providing distribution into new channels and meaningful cost synergy opportunities," said David Kennedy, interim chief executive officer. " In addition, it offers opportunities for profitable growth by leveraging our enhanced innovation capability and know how. We expect the acquisition to be accretive to cash flow and earnings in the first year.”