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Elizabeth Arden to Evaluate Tender Offer by Affiliates of Rhône Capital

Posted: August 27, 2014

Elizabeth Arden announced that Nightingale Onshore Holdings L.P. and Nightingale Offshore Holdings L.P., investment funds affiliated with Rhône Capital L.L.C., have commenced a partial tender offer to acquire up to 6,442,013 shares of the company’s outstanding common stock, constituting approximately 20% of such outstanding common stock, at a cash purchase price of $17.00 per share. Arden’s board of directors, in consultation with the its management and its financial and legal advisors, intends to evaluate the offer.

According to The Wall Street Journal, Rhone Capital had said that it planned to increase its ownership over time but that it wouldn't acquire more than 30% of the company's common stock after exercising the warrants. 

Elizabeth Arden has posted sales declines following a slowdown in sales of celebrity fragrances in mass retailers. In early August 2014, the company said its fiscal-fourth quarter loss widened sharply as a larger-than-expected drop in celebrity fragrances sales pushed down revenue.

In July, the company's board approved a cost-cutting effort that includes plans to exit some unprofitable businesses and fragrance-license agreements.