Revlon to Make Purchases in Beauty Field, Sources Say

Revlon Inc. is expected to announce plans “imminently” to buy some of the other big names in the beauty business including Max Factor, Almay Cosmetics and Halston/Orlane fragrances, Wall Street sources said Wednesday.

Max Factor and the others are now owned by Beatrice Cos.

They would be acquired by Revlon in a complicated deal that also involves the spinoff of International Playtex, also owned by Beatrice.

The purchase involves two of the biggest names in corporate takeovers in the last year. Revlon unsuccessfully fought a takeover late last year by Pantry Pride. Meanwhile, Beatrice was acquired late last year in a $6-billion leveraged buyout--the largest ever--by the private New York investment firm of Kohlberg Kravis Roberts & Co.

Beatrice--saddled with debt since the buyout--has been selling some operations recently, including the $1.4-billion sale to Coca-Cola of one of its bottling companies.

Meanwhile, Revlon said it has sold some operations it didn’t want, and sources say it is cash rich.

According to Wall Street sources, the sale would go like this. BCI Holdings, the company created to acquire Beatrice, will sell its personal products group to Joel E. Smilow, who currently heads Beatrice’s consumer products operations.

The sale would include International Playtex plus Max Factor and the two other beauty operations. Smilow, in turn, would keep Playtex and sell the rest to Revlon for an undisclosed amount of cash.

Terms and details of the financing were not available.

Max Factor reportedly has annual sales of $450 million; Almay and Halston about $60 million each.

Neither Revlon nor Smilow could be reached for comment late Wednesday. Charles Long, a spokesman for Beatrice, said: “I don’t know anything and won’t this evening.”

Smilow had been chairman, president and chief executive of International Playtex when it was owned by Esmark a few years ago. Since then, Esmark was bought by Beatrice.

When Beatrice bought Esmark, Smilow was named executive vice president, one of the company’s top three operating executives, and he also was named a Beatrice director. In that capacity, he was in charge of Beatrice’s then $3-billion consumer group that included Max Factor, Jhirmack, Danskin, Around the Clock hosiery, Halston and Almay.

He resigned abruptly in late 1984, saying he wanted to explore other opportunities.

Smilow was among the four former Esmark executives who returned to Beatrice last November shortly after the Kohlberg Kravis buyout.

Meanwhile, in a separate announcement, Revlon said Wednesday that it had completed the sale of its Technicon business to Cooper Technicon Inc. Bruce Slovin, president, said: “We have now completed the divestiture program of Revlon Inc.’s assets.”

Revlon, which was bought out late last year by Pantry Pride, has sold a number of units, including Armour, USV Pharmaceutical, Norcliff Thayer, Reheis Chemical and Technicon Data System.

Sources said Revlon has $2 billion in proceeds from the divestiture program, which will help pay for the acquisition of the Beatrice businesses. Max Factor, which had been headquartered in Hollywood for years, moved East two years ago.