Revlon has emerged from bankruptcy as a private company after cutting over $2.7 billion in debt and handing control of the company to its lenders.

WHO: Revlon was founded in 1932 by brothers Charles and Joseph Revson and Charles Lachman with the breakthrough launch of the first opaque nail enamel, followed by coordinating lipsticks. By 1955, the brand was international. Ron Perelman gained control of the business in 1985 via a hostile takeover executed through MacAndrews & Forbes. In 2016, Revlon acquired the iconic Elizabeth Arden company and its portfolio of brands.

The company's diversified portfolio is sold in approximately 150 countries around the world in most retail distribution channels, including prestige, salon, mass, and online. The brands include Revlon, Revlon Professional, Elizabeth Arden, Almay, Mitchum, CND, American Crew, Creme of Nature, Cutex, Juicy Couture, Elizabeth Taylor, Britney Spears, Curve, John Varvatos, Christina Aguilera, and AllSaints.

WHY: Saddled with debt and slow to adapt to new market realities, the beauty conglomerate wasn't equipped to navigate supply chain challenges that decimated its inventory. In a hyper-competitive environment, there was no shortage of hungry niche beauty brands looking to stake their claim on mass retail shelves to fill the void left by Revlon out-of-stocks.

IN THEIR OWN WORDS: “Today marks an important moment in Revlon’s history and evolution,” said Debra Perelman, President and CEO of Revlon, in a statement. “We look forward to unlocking the full potential of our globally recognized brands and continuing to offer our customers the iconic products they have loved for decades.”

Liz Smith said, “I am confident that today’s milestone is only the beginning of Revlon’s bright future. While honoring the Company’s legacy, I look forward to working alongside the management team and my director colleagues to usher in a new era, execute against the significant opportunities ahead, and deliver enduring value to all Revlon’s stakeholders.”

Noah Charney, Managing Director at King Street Capital Management, L.P., said, “On behalf of Revlon’s new shareholder group, we are proud to serve as stewards of this storied American business and support the Company as it embarks on its path to sustainable, profitable growth.”

DETAILS:

• Revlon's lenders took ownership of the company in exchange for the debt reduction agreement, wiping out the equity value of existing shareholders.
• Most of Revlon's new owners are former lenders and include Glendon Capital Management, King Street Capital Management, Angelo Gordon & Co, Oak Hill Advisors, and Cyrus Capital Partners LP, among others.
• The company changed its corporate name to Revlon Group Holdings and exited bankruptcy with $1.5 billion in debt and $236 million in available liquidity. It previously announced plans to raise $670 million by selling new equity shares after its bankruptcy.
• Net sales for the first quarter were $490 million, surpassing the $483 million forecast in the company’s business plan outlined in December. Operating income was $51 million, more than double the $19 million projected in the business plan.
• Revlon has formed a new Board of Directors for the reorganized company comprised of senior executives with deep knowledge of the global consumer, retail, and beauty industries, including Executive Chair Elizabeth (Liz) A. Smith, former Executive Chairman and Chief Executive Officer of Bloomin’ Brands, Inc. and former Chair of the Federal Reserve of Atlanta; Martin Brok, former Global President and Chief Executive Officer of Sephora; Timothy McLevish, former Chief Financial Officer at Walgreens Boots Alliance, Inc.; Hans Melotte, former President of Starbucks’ Global Channel Development; and Paul Pressler, Chairman of the Board of Directors of eBay, Inc.
• PJT Partners acted as financial advisor to Revlon and Alvarez & Marsal acted as restructuring advisor. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to the company.
• Centerview Partners LLC acted as financial advisor and Davis Polk & Wardwell LLP acted as legal advisor to the company’s lenders.