Unilever to Purchase Arden, Fabrege in Deal Valued at $1.55 Billion

The Anglo-Dutch Unilever group said today that it will pay $1.55 billion for the cosmetics and toiletries businesses of U.S.-based Faberge and Elizabeth Arden in a deal that will make it a leader in personal products sales.

Unilever PLC-NV is the world’s second-largest consumer goods company, with interests from foods to detergents. The cash deal will be one of the biggest in a series of recent trans-Atlantic takeovers by European firms.

Unilever said the acquisition of the Faberge and Elizabeth Arden toiletries, cosmetics and fragrances businesses would be made through Unilever United States Inc.

The deal, subject to a definitive agreement and government approval, is expected to be completed in 90 days and will boost Unilever’s foothold in the U.S. hair-care market. Unilever took over Chesebrough-Pond’s in a $3.1-billion deal in 1987.

Unilever had total revenues of 16.6 billion pounds ($29.4 billion) in 1987, and Chairman Michael Angus said the company has $1.5 billion in cash with which to finance the deal.

“The acquisition will increase the size of Unilever’s personal products business by more than 25%,” Unilever Chairman Michael Angus said.

Faberge and Elizabeth Arden are part of the Riklis Family Corp. Drug maker Eli Lilly and Co. sold Elizabeth Arden to Faberge for about $700 million in 1987.

Faberge manufactures personal care products and toiletries that are sold in supermarkets, drug and discount stores, and Elizabeth Arden produces the more up-scale skin care, makeup and fragrance products sold in department stores. Arden’s Visible Difference moisturizer is its best-selling product.

The purchase of Elizabeth Arden will allow Unilever to cover the full price range of the cosmetics market.