Revlon sells non-core Brazilian brands for $104 mln

Cosmetics maker Revlon Inc said it sold some non-core Brazilian brands for about $104 million in cash to Hypermarcas S.A., a diversified consumer products company based in Brazil.

Revlon, controlled by financier Ronald Perelman, said it expects net proceeds, after payment of taxes and transaction costs, to be about $94 million.

The company, whose brands include Almay, Mitchum, Charlie and Gatineau, expects to record a one-time gain of about $50 million in the third-quarter results from the deal.

Revlon said the sale of its non-core Bozzano brand, a men's hair care and shaving line of products, and some other non-core brands, was effected through the sale of its Brazilian unit, Ceil Comercio E Distribuidora Ltda.

Revlon brand color cosmetics will continue to be marketed in Brazil through its current third-party distributor, the company said in a statement.

Revlon said it expects that Ceil's net sales, operating income and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) would not be material to the ongoing financial results of the company. (Reporting by Dilipp S Nag in Bangalore; Editing by Gopakumar Warrier)

Source: Reuters