The acquisition process, which was first announced in August of this year, also serves to give the company’s global footprint a boost, given the company’s particular exposure to the European market, Middle East and Africa markets, as well as the US.
Revlon has confirmed that it paid a price of $665 million to acquire the business, which it confirmed was financed through an increase of $700 million in its bank loan facility.
More geographic footprint and channel diversity
“We are excited about the acquisition of TCG, which provides Revlon with broad brand, geographic and channel diversification,” said David Kennedy, interim CEO.
“The acquisition substantially expands our business, providing distribution into new channels and meaningful cost synergy opportunities. In addition, it offers opportunities for profitable growth by leveraging our enhanced innovation capability and know how. We expect the acquisition to be accretive to cash flow and earnings in the first year.”
The business produces hairdressing and beauty products for salon and general retail categories and has a workforce of around 2,200 worldwide, including subsidiaries in the US, Italy, Mexico and all over Europe and Latin America.
Hair care, skin care and men's grooming
TCG currently estimates that approximately 50% of its sales are in the Europe, Africa and Middle East market, with 40% in the United States.
The company has a turnover of approximately $500 million in annual net sales, with its primary brands being Revlon Professional, Intercosmo, Orofluido, and UniqOne hair care brands; CND nail polishes and enhancements, and American Crew men’s grooming range.
TCG also sells certain brands directly into retail channels, including Natural Honey body lotions and Llonguerashair care, and operates a multi-cultural hair care business under the Crème of Nature brand.
CEO resigns, interim CEO appointed
Last week Revlon announced that its CEO Alan Ennis had resigned, with Kennedy being appointed as interim CEO.
In an official statement Revlon said that Ennis had left ‘to pursue other interests’, but the departure also comes as the company has continued to post mixed financial results, characterized by rising profits and slowing sales growth, exacerbated by unfavorable currency translations.
Kennedy currently serves as vice chairman of the company’s board of directors, and previously served as a Revlon senior executive from 2002 to 2009, which included a stint as president and CEO of Revlon from 2006 to 2009.