Ronald Perelman to seek strategic alternatives for Revlon
18 Jan 2016
US billionaire Ronald Perelman, controlling shareholder of Revlon Inc said over the weekend that he would seek strategic alternatives for the cosmetics company.
Perelman's investment company MacAndrews & Forbes had in 1985 acquired a controlling 77.6-per cent stake in Revlon for about $1.8-billion in a hostile takeover.
In 2009 Perelman, whose investments include Revlon, Harland Clarke, Mafco, Scantron and military all-purpose vehicle Humvee maker AM General, unsuccessfully tried to take the company private amid accusations that minority shareholders were misled.
Founded in 1932 Revlon is a New York-based colour cosmetics, hair colour, beauty tools, fragrances, skincare, anti-perspirant / deodorants and beauty care products company.
Its global brand portfolio includes Revlon color cosmetics, Almay color cosmetics, SinfulColors colour cosmetics, Pure Ice colour cosmetics, Revlon ColorSilk hair color, Revlon beauty tools, Charlie fragrances, Mitchum anti-perspirant / deodorants, and Ultima II and Gatineau skincare.
Shares of the company have fallen 24 per cent over the past 12 months, and it currently has a market value of about $1.32 billion.
It posted 2014 net profit of $40.9 million on revenues of $1.94 billion, but Revlon's profit declined to $6.2 million in the third quarter 2015, from $14.6 million in the prior-year period.
It main competitors are Estee Lauder Cos and Avon Products Inc among others.
Both Revlon and Avon have been struggling with sales decline over the years
In September, Revlon tabled a restructuring plan to cut costs across its consumer and professional businesses, while Avon last month said that it would split off its North American business as part of a $605 million deal with private-equity firm Cerberus Capital Management.