The Reliance Group said it is looking to buy Revlon’s business in the U.S., just two days after the cosmetics company filed for bankruptcy.
Revlon’s decision to file for Chapter 11 was triggered by the company’s struggle to maintain its sales. Ongoing supply chain issues also drove up material costs, prompting the company’s suppliers to demand upfront payments, which made managing the debt load more challenging.
If the acquisition deal succeeds, Revlon will become a part of Reliance’s growing beauty portfolio. In recent years, the retail giant has been fast expanding into the fashion, beauty, and personal care segments as it looks to diversify away from its oil and gas business.
In April, the company also expressed interest in acquiring U.K. pharmacy chain Boots, which is estimated to be valued between $6.2 billion and $7.5 billion, in collaboration with Apollo Global Management. Walgreen’s Boots division operates more than 2,200 stores in the U.K., including pharmacies, health, and beauty stores.
After the news broke, Revlon’s stock jumped by 20% to $2.36 in premarket trading, while Reliance’s stock was up 1.9% in the Mumbai stock market. Both Reliance and Revlon declined to comment on the news.