Revlon's Acquisition of Elizabeth Arden
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Case Code: BSTR534 Case Length: 10 Pages Period: 2015-2017 Pub Date: 2018 Teaching Note: Available |
Price: Rs.300 Organization : Elizabeth Arden Inc./Revlon Inc. Industry :Cosmetics Countries : USA / Global Themes: Mergers and Acquisitions |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
In March 2017, New York-based cosmetics, skin care, fragrance, and personal care company Revlon Inc, (Revlon) reported its net sales rose to $2.3 billion in 2016, a 21.9 percent increase compared to 2015. Revlon witnessed growth across all segments. This growth in sales came amidst Revlon’s plans to shift to a brand-centric structure after initiating a restructuring plan in 2016. The restructuring followed Revlon’s acquisition of Elizabeth Arden Inc, (Arden), a Florida-based, cosmetics, skin care, and fragrance major, for $ 870 million. The merged company was expected to leverage the strength of its brands and adapt to the changing behaviors and preferences of consumers to serve them better. In addition to expanding categories, channels, and geographies, Revlon expected to hit $5 billion in sales in the next five years. As part of the integration, it announced the elimination of 350 positions worldwide and streamlining of certain operations. In addition, project integration-related restructuring activities were estimated to cost between $65 million and $75 million by 2020.
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