Elizabeth Arden, Inc. (RDEN) stock was up on Friday following news of an acquisition by Revlon Inc (REV).
Revlon announced that it will be buying Elizabeth Arden for $870 million. This will have it paying $14 per share for the company. The payment will be made in cash and the offer is a 50% increase over its closing price on June 16, 2016.
Revlon expects to save $140 million a year due to cost synergies from the deal. It’s also expecting $3 billion in revenue for 2016 after it finishes it’s acquisition of RDEN. This is an increase over its previous revenue guidance, which was between $2.0 billion and $2.1 billion.
The deal between Revlon and Elizabeth Arden still has to be approved by the latter’s stockholders and it will also need regulatory approval. The acquisition is expected to close by the end of the year.
RDEN shares were up 47% and REV shares were up 10% as of Friday morning.
More From InvestorPlace:
