Revlon paid $870m for the outstanding shares of Elizabeth Arden and projected cost synergies of $140m, as Cosmetics Design reported at the time of the acquisition.
Now, according to documents that Revlon filed yesterday with the Securities and Exchange Commission, “as a result of the Integration Restructuring Actions, as well as other actions that the Company is continuing to evaluate related to integrating the Elizabeth Arden organization into the Company’s business, the Company has identified incremental annualized synergies and cost reductions that are expected to significantly exceed the previously-disclosed $140 million in annualized synergies and cost reductions.”
Late last month Revlon “begin the process of implementing certain integration activities, including consolidating offices, eliminating certain duplicative activities and streamlining back-office support,” according to the company’s latest SEC filing.
Just yesterday, Revlon began letting employees know if the integration of the two businesses would affect them directly. It’s possible that this doesn’t mean layoffs for everyone; changes to current job responsibilities and titles may be in the works.
Nonetheless, the company noted in its SEC filing that 350 positions will be eliminated. Those jobs aren’t only here in the Americas region, but throughout the global company. These cuts will yield the biggest savings for Revlon, amounting to “approximately $40 million to $50 million of employee-related costs, including severance, retention and other contractual termination benefits,” the company filing states.
Revlon anticipates that the restructuring will be complete within the next three years. As explained in the SEC filing, “certain of the Integration Restructuring Actions may be subject to consultations with employees, works councils, unions and/or governmental authorities, the Company currently expects to substantially complete these actions by the end of 2020.”