01.15.16
First he gutted it, now he may be getting rid of it. Billionaire Ron Perelman, the majority owner of Revlon Inc., said he would seek strategic alternatives for the cosmetics maker. Perelman's investment company, MacAndrews & Forbes, said in a filing it had not formulated any specific or definitive plan or proposal. MacAndrews & Forbers owns 78% of Revlon, the one-time leader in the mass color cosmetics market.
As noted in Bloomberg Business, Perelman gained control of Revlon in 1985 using cash raised with the help of former junk-bond king Michael Milken. In 2009, Perelman tried to take Revlon private in 2009, prompting a lawsuit from other investors that he agreed to settle.The Almay owner has posted profit declines in recent years as sales of some of its larger brands slow. Having withdrawn from China about two years ago, the company has sought to find new areas of growth by acquiring Colomer Group, giving it Creative Nail Design and Shellac nail polishes.
But those moves haven't paid off. Revlon's share price has dropped 24% during the past 12 months, reducing its market value to about $1.3 billion. In contrast, Estée Lauder's price per share has gained 14%.
As noted in Bloomberg Business, Perelman gained control of Revlon in 1985 using cash raised with the help of former junk-bond king Michael Milken. In 2009, Perelman tried to take Revlon private in 2009, prompting a lawsuit from other investors that he agreed to settle.The Almay owner has posted profit declines in recent years as sales of some of its larger brands slow. Having withdrawn from China about two years ago, the company has sought to find new areas of growth by acquiring Colomer Group, giving it Creative Nail Design and Shellac nail polishes.
But those moves haven't paid off. Revlon's share price has dropped 24% during the past 12 months, reducing its market value to about $1.3 billion. In contrast, Estée Lauder's price per share has gained 14%.