REVLON NEARING $1.6 BIL. DEBT REPAYMENT GOAL WITH SALE OF TECHNICON
REVLON NEARING $1.6 BIL. DEBT REPAYMENT GOAL WITH SALE OF TECHNICON diagnostics hardware subsidiary for $300 mil. to Cooper Development and a group of investors. The buyout was announced by the companies jointly June 2. Revlon has been trying since last fall to sell Technicon to help eliminate the debt incurred with its $1.6 bil. acquisition by Pantry Pride. Earlier in the year, Revlon and projected a buying price of $500-$600 mil. for the diagnostics business. Revlon has already received roughly $1.1 bil. with the divestiture of its USV/Armour to Rorer and Norcliff Thayer to Beecham, and an additional $30 mil. with the sale of Reheis its fine chemicals subsidiary. This latest $300 mil. transaction leaves the beauty group as Revlon's largest business segment, followed by the firm's optical segment, Barnes Hind and Coburn. The buyout involves "key" members of both Cooper and Technicon management and outside investors, including Drexel Burnham Lambert. The buyers are paying $250 mil. in cash and $50 mil. in preferred stock for Technicon. Under terms of the agreement, Technicon will act as an independent subsidiary of Cooper with current management coming along with the deal. The acquisition is expected to be finalized by July 31, pending approval by Cooper Development shareholders. In fiscal 1985, Tarrytown, New York-based Technicon had sales of over $300 mil. Revlon paid about $400 mil. for the business in 1980, mostly in stocks. Separately, Technicon Data Systems, the health care information segment of Technicon, was sold in a leveraged buyout financed by Technicon founders John and Edwin Whitehead and New York investment group Donaldson Lufkin & Jenrette. Terms of the sale were not disclosed. Technicon Data Systems, with sales of approximately $30 mil. in FY 1985, is based in Santa Clara, California.
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