Revlon has announced that it will begin eliminating approximately 350 positions worldwide in an effort to reduce the company’s selling, general and administrative expenses. The company expects to complete its integration and restructuring actions by the end of 2020.
As previously announced on September 7, 2016, Revlon completed the acquisition of Elizabeth Arden, and on December 22 began the process of implementing certain integration activities, including consolidating offices, eliminating certain duplicative activities and streamlining back-office support, in connection with integrating the Elizabeth Arden and Revlon organizations.
As a result of these changes, Revlon expects to recognize approximately $65 million to $75 million of total pre-tax restructuring and related charges. Of these charges, Revlon expects that it will record for 2016 an estimated pre-tax restructuring charge of approximately $30 million. Revlon expects that all of the Integration Restructuring Charges will be paid in cash, with approximately $30 million to $40 million expected to be paid in 2017, with the remaining balance to be paid through 2020. In addition, Revlon 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.
The company is still finalizing and fine-tuning its integration cost reduction estimates, as well as related non-restructuring costs and integration-related capital expenditures and, therefore, total integration program estimates are not available at this time.