The US beauty brand paid $660m in cash
US beauty brand Revlon has acquired Spanish professional beauty care company The Colomer Group (TCG) for $660m in cash. The transaction, which was made via Revlon’s wholly owned operating subsidiary, Revlon Consumer Products Corporation, is expected to close in the fourth quarter of 2013.
According to Revlon, TCG strategically complements the company as it markets and sells professional products to salons and other professional channels under brands including Revlon Professional hair care, which it currently licenses from the company. Approximately 50% of TCG's business is in Europe, the Middle East and Africa, 40% is in the US and the remaining 10% in the rest of the world.
Commenting on the transaction, Revlon President and CEO, Alan T. Ennis said: "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. 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 capitalise 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."