NEW YORK — Revlon Inc. said Thursday it is buying Elizabeth Arden Inc. for about $419.3 million in cash, a deal uniting two well-known names in the world of beauty and cosmetics.
The New York company is paying $14 for each Elizabeth Arden share, a premium of 50 percent over their closing price Thursday. The companies value the deal at $870 million including debt.
Revlon said the combined company will benefit from having a presence in more markets worldwide. It expects savings of about $140 million from the combination.
Company founder Elizabeth Arden opened her first Red Door salon on New York’s Fifth in 1910. The company was in the midst of trying to turn its business around and posted a loss of $28.4 million on revenue of $191.9 million in its most recent quarter.
Revlon was founded in 1932. It posted a first-quarter profit of $11 million on sales of $439.6 million.
Elizabeth Arden shares jumped $4.67, or 50 percent, to $13.98 in aftermarket trading after the deal was announced. Revlon tacked on 15 cents, or 0.5 percent, to $31.30.
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