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| Revlon Signs Agreement to Sell Maesteg, Wales Facility to CW Cosmetics Ltd. |
Deal Includes Long Term Contract for CW Cosmetics Ltd. to Supply
All Revlon Products for European Market
Greater Utilization of Plant Expected to Increase Workforce
NEW YORK, July 31 /PRNewswire/ -- Revlon, Inc. (NYSE: REV), announced
today that CW Cosmetics Ltd. has purchased the Revlon subsidiary that owns and
operates its manufacturing facility in Maesteg, Wales, UK, including all
production equipment. Revlon will receive approximately USD $20.0 million,
USD $10.0 million payable on the closing and USD $10.0 million in deferred
purchase price. CW Cosmetics Ltd. will produce all Revlon color cosmetics and
other products for Revlon's European market pursuant to a long-term Supply
Agreement.
The Welsh Development Agency and the Welsh Assembly have been working
closely with both companies to ensure that the final agreement results in a
positive economic outcome for the Welsh community.
Jeffrey Nugent, President and CEO of Revlon, said, "We are very pleased to
have reached an agreement that is positive for all parties involved. As a
third party manufacturer, CW Cosmetics Ltd. will be able to utilize the excess
capacity which has burdened the performance of the Maesteg facility."
Michael ten Hope, Group Managing Director of CW Cosmetics Ltd., said, "We
recognize the growing trend in outsourcing the manufacturing of cosmetics and
other beauty care products in the European market, and Revlon's long-term
contract is confirmation of this trend. This acquisition will enable us to
utilize the plant capacity to meet the needs of Revlon and other customers
with a talented and highly skilled workforce already in place."
The sale of the Maesteg facility is another step in Revlon's global
manufacturing rationalization and consolidation plans to increase operating
efficiencies. Revlon intends to use the proceeds from the Maesteg sale to
fund portions of its previously announced restructuring plan and for general
corporate purposes.
This press release contains certain forward-looking information subject to
the safe harbor provisions of the Private Securities Litigation Reform Act.
Such statements include Revlon's intent and expectations as to future events
and conditions including its expectation that the transaction will over time
result in increased operating efficiencies and its intent with respect to the
use of the proceeds from the sale. In addition to factors that may be
disclosed in Revlon's filings with the SEC, the following factors could cause
actual results to differ materially from those contained in any forward-
looking statement - difficulties or delays or inability to achieve expected
increases in operating efficiencies.
About Revlon
Revlon is a worldwide cosmetics, skincare, fragrance, and personal care
products company. The Company's vision is to become the world's most dynamic
leader in global beauty and skincare. A web site featuring current product
and promotional information can be reached at http://www.Revlon.com. The
company's brands include Revlon(R), Almay(R), Ultima II(R), Charlie(R) and
Flex(R) and they are sold worldwide.
SOURCE Revlon, Inc.
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CONTACT:
Media - Catherine Fisher, +1-212-527-5727, or
Investor Relations - Laura Kiernan, 212-527-5230, both for Revlon
