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MacAndrews & Forbes: Difference between revisions
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MacAndrews next purchased [[Pantry Pride]] Inc., in June 1985. Its three retail supermarket chains were sold off within months.<ref name="fu"/> | MacAndrews next purchased [[Pantry Pride]] Inc., in June 1985. Its three retail supermarket chains were sold off within months.<ref name="fu"/> | ||
In 1985, Perelman also took on his biggest deal yet: The [[Revlon|Revlon Corporation]]. Financed with over $700 million in [[High-yield debt|junk bonds]] from [[Michael Milken|Michael Milken's]] firm, [[Drexel Burnham Lambert]], Pantry Pride Inc. offered to buy any or all of Revlon's 38.2 million outstanding shares for $47.5 per share when its street price stood at $45 per share. Initially rejected, Perelman repeatedly raised his offer until it reached $53 per share, while fighting Revlon's management every step of the way. [[Forstmann Little & Company]] swooped in and offered $56 per share. A brief public bidding war ensued, and Perelman triumphed with an offer of $58 per share. As a result, Perelman paid $1.8 billion to Revlon's shareholders, but he also paid $900 million in other costs associated with the purchase.<ref name="2.7Billion">{{cite news |first=Richard |last=Stevenson |title=Pantry Pride Control of Revlon Board Seen Near |newspaper= | In 1985, Perelman also took on his biggest deal yet: The [[Revlon|Revlon Corporation]]. Financed with over $700 million in [[High-yield debt|junk bonds]] from [[Michael Milken|Michael Milken's]] firm, [[Drexel Burnham Lambert]], Pantry Pride Inc. offered to buy any or all of Revlon's 38.2 million outstanding shares for $47.5 per share when its street price stood at $45 per share. Initially rejected, Perelman repeatedly raised his offer until it reached $53 per share, while fighting Revlon's management every step of the way. [[Forstmann Little & Company]] swooped in and offered $56 per share. A brief public bidding war ensued, and Perelman triumphed with an offer of $58 per share. As a result, Perelman paid $1.8 billion to Revlon's shareholders, but he also paid $900 million in other costs associated with the purchase.<ref name="2.7Billion">{{cite news |first=Richard |last=Stevenson |title=Pantry Pride Control of Revlon Board Seen Near |newspaper=The New York Times|page=D5 |date=1985-11-05 |url=https://www.nytimes.com/1985/11/05/business/pantry-pride-control-of-revlon-board-seen-near.html |access-date=February 25, 2014}}</ref> | ||
After the acquisition, Perelman had Revlon sell four of its divisions: Two were sold for $1 billion, the Vision Care division was sold for $574 million, and, in 1988, the National Health Laboratories division became a publicly owned corporation. Additional makeup lines were purchased for Revlon: [[Max Factor]] in 1987 and Betrix in 1989 (they were later sold to [[Procter & Gamble]], in 1991).<ref name="fu"/> Despite Perelman's regular cleansing of upper management<ref name="PossibleBuyout">{{cite news |first=Ann |last=Hagedom |title=Possible Revlon Buyout May Be Sign Of a Bigger Perelman Move in Works |newspaper=Wall Street Journal |page=1 |date=1987-03-09<!--|accessdate=May 16, 2007-->}}</ref> and injecting millions of dollars into the company,<ref name="PerilsPerelman">{{cite journal | author=Atlas, Riva| title=The Perils of Perelman| journal=Institutional Investor| year=2000| volume=34| issue=3| page=54}}</ref> Revlon was unable to turn a profit for several years. As of the first quarter of 2007, it had had one profitable quarter in the previous 32.<ref name="RevlonProfits">{{Cite web|url=http://findarticles.com/p/articles/mi_m0EIN/is_2005_March_8/ai_n11853855 |title=Revlon Reports First Profitable Quarter in Six Years; Fourth Quarter and Full Year 2004 Results in Line with Expectations |access-date=February 7, 2007 |publisher=Business Wire |year=2005 |author=Gale Group |url-status=dead |archive-url=https://web.archive.org/web/20170809160827/http://findarticles.com/p/articles/mi_m0EIN/is_2005_March_8/ai_n11853855 |archive-date=August 9, 2017 }}</ref> | After the acquisition, Perelman had Revlon sell four of its divisions: Two were sold for $1 billion, the Vision Care division was sold for $574 million, and, in 1988, the National Health Laboratories division became a publicly owned corporation. Additional makeup lines were purchased for Revlon: [[Max Factor]] in 1987 and Betrix in 1989 (they were later sold to [[Procter & Gamble]], in 1991).<ref name="fu"/> Despite Perelman's regular cleansing of upper management<ref name="PossibleBuyout">{{cite news |first=Ann |last=Hagedom |title=Possible Revlon Buyout May Be Sign Of a Bigger Perelman Move in Works |newspaper=Wall Street Journal |page=1 |date=1987-03-09<!--|accessdate=May 16, 2007-->}}</ref> and injecting millions of dollars into the company,<ref name="PerilsPerelman">{{cite journal | author=Atlas, Riva| title=The Perils of Perelman| journal=Institutional Investor| year=2000| volume=34| issue=3| page=54}}</ref> Revlon was unable to turn a profit for several years. As of the first quarter of 2007, it had had one profitable quarter in the previous 32.<ref name="RevlonProfits">{{Cite web|url=http://findarticles.com/p/articles/mi_m0EIN/is_2005_March_8/ai_n11853855 |title=Revlon Reports First Profitable Quarter in Six Years; Fourth Quarter and Full Year 2004 Results in Line with Expectations |access-date=February 7, 2007 |publisher=Business Wire |year=2005 |author=Gale Group |url-status=dead |archive-url=https://web.archive.org/web/20170809160827/http://findarticles.com/p/articles/mi_m0EIN/is_2005_March_8/ai_n11853855 |archive-date=August 9, 2017 }}</ref> | ||