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| Revlon Signs Definitive Agreement for Sale of its Worldwide Professional Products Business with CVC Capital Partners and Carlos Colomer |
NEW YORK, Feb. 19 /PRNewswire/ -- Revlon, Inc. (NYSE: REV), CVC Capital Partners and Carlos Colomer announced today that they have signed a definitive agreement with a company formed by CVC Capital Partners, the Colomer family and other investors, led by Carlos Colomer, the Chairman of Revlon Professional Products Worldwide, to sell Revlon's worldwide professional products business for $315 million, subject to certain closing adjustments, plus $10 million in contingent consideration. Additionally, as part of the transaction, Revlon entered into agreements pursuant to which the buyer will distribute Revlon products in Spain and Portugal. The transaction, which is subject to a number of conditions including the closing of financing and the receipt of regulatory approvals, is expected to close by early March of 2000. Mr. Colomer will be Chief Executive Officer of the new company, which will conduct business as the Colomer Group and will be headquartered in Barcelona, Spain. The sale of Revlon Professional Products Worldwide will involve the professional salon products, ethnic beauty products and Natural Honey skin care businesses around the world, including in the U.S., Spain, Portugal, Italy, France, Germany, Mexico, South Africa, Canada, Argentina, Korea, United Kingdom, Benelux and Ireland. This includes manufacturing and other facilities located in Jacksonville, Florida; Barcelona and Pla de Santa Maria, Spain; Bologna, Italy; Queretaro, Mexico; Dublin, Ireland; Vista, California; and Boulder, Colorado. The brands that will be sold include, American Crew, Creative Nail Design, Natural Wonder, Equave, Sensor Perm, Interactives, Roux, Realistic, African Pride, Creme of Nature, Henry Colomer, and Natural Honey, and a license for Llongueras. As part of the transaction, the purchaser is receiving a long-term worldwide license to use the "Revlon Professional," "Revlon Salon," "Revlon Salon and Spa," "Revlon Coiffure," "Revlon Realistic," and "Revlonissimo" trademarks among others for professional salon and ethnic beauty products. Approximately 1500 employees are affiliated with the businesses to be sold, of which approximately 850 are located in the United States. Substantially all of these employees will be transferring to the new company. Carlos Colomer has spent his entire career in the professional beauty business, joining Revlon in 1969 when Revlon purchased his family's company, Henry Colomer S.A., which manufactured and sold salon products, principally in Europe. Mr. Hardy McLain, Managing Director of CVC, said, "I am delighted with our involvement in this transaction. We are backing a strong management team led by Carlos Colomer, who has impressed us as a first class international businessman. We are acquiring a business with a solid financial structure and a strong international brand with significant growth potential." Mr. Colomer said, "I have enjoyed my involvement with Revlon over the years and building a successful international business. I now look forward to growing Revlon Professional further with the involvement of CVC Capital Partners and the support of my family and my management partners. With this deal, we are bringing back to the entrepreneurial industry of hairdressing several great family businesses. I am sure the professional world will welcome us back carrying the industry spirit, passion and creativity. For more that 20 years my home and family has been Revlon and I have a deep gratitude to many great friends that have helped me during all those successful years." Mr. Jeffrey M. Nugent, President and Chief Executive Officer, Revlon, Inc., said, "Carlos Colomer is a superb businessman with deep experience in the professional side of beauty. With the help of the talented and committed employees at Professional Products, we have complete confidence in their future success." Forward-Looking Statements Information in this press release which is not historical is forward-looking and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include Revlon's expectations and estimates about future events, including Revlon's expectation that it will consummate the sale of its worldwide Professional Products business in early March of 2000. Actual results may differ materially from such forward looking statements for a number of reasons including difficulties, delays or an inability to consummate the sale of the worldwide Professional Products business. Revlon is a worldwide cosmetics, skin care, fragrance, and personal care products company. The Company's vision is to become the world's most dynamic leader in global beauty and skin care. A web site featuring current product and promotional information can be reached at http://www.revlon.com . Revlon brands include Revlon(R), Almay(R), Ultima II(R), Charlie(R) and Flex(R), and they are sold in approximately 175 countries and territories. CVC Capital Partners is a leading independent private equity provider in Europe with total funds under management in excess of USD 4 billion (EURO 4 billion). CVC has offices in 10 European countries and has made investments in more than 200 companies across Europe.SOURCE Revlon, Inc.
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CONTACT:
Media, Richard Woods, 212-527-5791, or
investors, Deena S. Fishman, 212-527-5230, both of Revlon; or
media, Hardy McLain or Suzy Wayne, both for CVC Capital Partners
in London, +44-20-7420-4240, or Javier de Jaime or Joaquin
Pereira, both for CVC Capital Partners in Madrid, +34-91-436-4280
