Major beauty industry news broke on Thursday when Revlon Inc. announced plans to buy longtime cosmetics rival Elizabeth Arden Inc., just months after reports that Revlon controlling shareholder and chairman Ronald O. Perelman had considered putting the former up for sale.
The $420 million deal, The Wall Street Journal reports, will help Revlon refinance its debt load and is expected to close by the end of the year. Both Revlon and Elizabeth Arden have struggled over the past few years, so with the buyout, Revlon hopes to expand its reach in perfume and skin care. (Elizabeth Arden is the maker of many celebrity fragrances, including scents by Elizabeth Taylor, Taylor Swift, Justin Bieber and Britney Spears.)
After Revlon's CEO Lorenzo Delpani stepped down in March of this year and was suceeded by Fabian Garcia, it's became clear that the company was looking to move in a different direction. Throughout 2016, the cosmetics industry as a whole has sought out new ways to appeal millennials — a prime example being the launch of Estée Lauder's younger-focused, Kendall Jenner-fronted Estée Edit. It remains to be seen exactly what tactics Revlon will employ, but industry analysts expect a bigger focus on growing the company's e-commerce business.