Revlon CEO Fabian Garcia to Leave Next Month -- Update

By FeaturesDow Jones Newswires

Revlon Inc. Chief Executive Fabian Garcia -- brought in less than two years ago to help revive the iconic beauty giant -- is leaving the company next month.

The New York said Monday board member Paul Meister will take over day-to-day operations on a temporary basis, while Mr. Garcia, who also serves as president, stays on through the end of February to help with the transition.

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Mr. Meister, who joined Revlon's board in 2016 and will now become executive vice chairman, is the president of MacAndrews & Forbes Inc., the investment firm run by Ronald O. Perelman, Revlon chairman and controlling shareholder.

Revlon also said one-time charges related to changes to the U.S. tax code drove its fourth-quarter loss to about $60 million to $80 million, compared with a loss of $36.5 million a year earlier. Sales were about $785 million, compared with $801 million a year earlier. Revlon is slated to release financial results on March 2.

Mr. Garcia, brought on in 2016 from Colgate-Palmolive Co. after a succession of CEOs failed to stem the company's market-share declines, led the $420 million acquisition of rival Elizabeth Arden -- a deal that expanded Revlon's presence in categories such as skin care and perfume but also added considerable debt.

Revlon's current debt load far exceeds its market capitalization, which stood at roughly $1.16 billion based on Monday's closing stock price, according to Thomson Reuters data.

Mr. Perelman, who forged his reputation as a corporate raider, won the company in a 1985 takeover battle.

In 2009, he tried to take the company private, but the move backfired amid accusations that shareholders were misled. The matter was later settled.

Shares, down 34% over the past 12 months, rose 1.8% to $22.40 in after-hours trading.

Becky Yerak contributed to this article.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

January 29, 2018 19:41 ET (00:41 GMT)

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