Revlon To Buy Back Colomer Group
Revlon has agreed to buy back Colomer Group, after selling it in 2000, for about $660 million. The group which sells hair dye and other products to beauty salons is part of Revlon’s strategy to help reach new salon customers.
Colomer was initially Revlon’s salon products business with a wide range of shampoo and hair products sold in salons and through retail channels and was purchased by CVC in 2000 for $315 million.
Colomer sells products to professional salons under brands such as Revlon Professional hair care, licensed from Revlon as part of a long-term contract, Creative Nail Professional nail polish like Shallac, and American Crew men’s hair care.
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Revlon sells Revlon and Almay makeup, Revlon ColorSilk hair dye and a wide array of other beauty products. The New York based company is hoping to increase sales outside the United States, and like its competitors had to deal with the recession in Europe which hurt sales. Approximately 50 percent of Colomer's sales are based in Europe, the Middle East and Africa, while 40 percent are in the U.S. and remaining 10 percent is balanced across the rest of the world.
Colomer'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," said Revlon CEO Alan Ennis in a statement. He also added that the deal could provide "meaningful" cost savings opportunities.
The acquisition is anticipated to be complete in the last three months of 2013 and added to Revlon's earnings in the first year after it's complete.