Shares of Revlon (REV) surged more than 5% in Monday morning trading after the company announced the re-acquisition of its former hair care product division.
In 2000, Revlon sold the Colomer Group, which makes beauty salon products, to CVC Capital partners. It will now buy the group back from CVC in a deal worth $660 million. The deal is expected to close during the fourth quarter, the Associated Press notes.
The move comes less than a week after Revlon posted second-quarter profits that were more twice those generated during the same time last year.
Revlon executives say the purchase will allow the company to enter the professional salon channel, where it currently has no presence.