Revlon Signs Agreement to Sell Maesteg, Wales Facility to CW Cosmetics Ltd.

Revlon, Inc. announced today that CW Cosmetics Ltd. has purchased the Revlon subsidiary that owns and operates its manufacturing facility in Maesteg, Wales, UK, including all production equipment. Revlon will receive approximately $20 million, $10 million payable on the closing and $10 million in deferred purchase price. CW Cosmetics Ltd. will produce all Revlon color cosmetics and other products for Revlon’s European market pursuant to a long-term Supply Agreement. The Welsh Development Agency and the Welsh Assembly have been working closely with both companies to ensure that the final agreement results in a positive economic outcome for the Welsh community.

Jeffrey Nugent, president and chief executive officer of Revlon, said, “We are very pleased to have reached an agreement that is positive for all parties involved. As a third party manufacturer, CW Cosmetics Ltd. will be able to utilize the excess capacity which has burdened the performance of the Maesteg facility.”

Michael ten Hope, group managing director of CW Cosmetics Ltd., said, “We recognize the growing trend in outsourcing the manufacturing of cosmetics and other beauty care products in the European market, and Revlon’s long-term contract is confirmation of this trend. This acquisition will enable us to utilize the plant capacity to meet the needs of Revlon and other customers with a talented and highly skilled workforce already in place.”

Revlon said the sale of the Maesteg facility is another step in its global manufacturing rationalization and consolidation plans to increase operating efficiencies. Revlon intends to use the proceeds from the Maesteg sale to fund portions of its previously announced restructuring plan and for general corporate purposes.