Crown Laboratories, Inc. (“Crown”), a leader in global skincare innovation, and biotechnology firm Revance Therapeutics, Inc. (“Revance”) (NASDAQ: RVNC), today declared a definitive merger agreement. This strategic move is set to reshape the landscape of the skincare and aesthetics industry.
The Deal Breakdown
Under the agreement, Crown will initiate a tender offer to purchase all outstanding shares of Revance at $6.66 per share in cash. This offer values Revance at an impressive $924 million, marking an 89% premium over its August 9 closing price and 111% above its 60-day weighted average. This premium reflects the significant strategic value Crown sees in Revance’s innovative aesthetic and therapeutic solutions.
Strategic Benefits and Growth Opportunities
Jeff Bedard, Crown’s CEO, expressed enthusiasm about the merger, highlighting it as a pivotal move towards Crown becoming a fully integrated, global powerhouse in aesthetics and skincare. “This merger extends our innovative reach, promising high-growth product lines and enhanced support for aesthetic providers nationwide,” Bedard noted.
Mark J. Foley, President and CEO of Revance, echoed this sentiment. He pointed out the merger’s potential to broaden their provider network and enhance their product portfolio. “Joining forces with Crown will not only accelerate our growth but also increase the value we deliver to our stakeholders through enhanced scale and product diversity,” Foley added.
What This Merger Means for the Market
The merger is set to close by the end of the year, with Revance transitioning to a privately held entity under Crown’s umbrella. The combined entity will boast over ten cutting-edge brands and a massive distribution network across medical, retail, and e-commerce platforms, positioning it as a leader in the high-growth global skincare market.
Looking Ahead
The transaction is contingent upon the majority approval from Revance’s shareholders, along with customary regulatory approvals. Both companies’ boards have unanimously recommended that shareholders accept the tender offer.
Advisory Roles
Centerview Partners LLC and Skadden, Arps, Slate, Meagher & Flom LLP are advising Revance, while PJT Partners alongside Kirkland & Ellis LLP and Lowenstein Sandler LLP are consulting for Crown.
About the Companies
Crown, known for its dynamic and scientifically advanced skincare solutions, has been a notable name in dermatology and aesthetics, consistently listed among the Inc. 5000 Fastest Growing Privately Held Companies. Revance has set benchmarks in healthcare with its aesthetic and therapeutic offerings, including its revolutionary DAXXIFY injection and the RHA Collection of dermal fillers.
This merger not only signifies a substantial financial investment but also underscores a shared commitment to innovation, quality, and patient satisfaction in the aesthetics and skincare markets. As the two companies unite, the industry watches closely, anticipating the next wave of innovations that will emerge from this powerful collaboration.
