Crown Laboratories, owner of Blue Lizard sunscreen and the premium skincare line Strivectin, announced on Monday a merger with medical aesthetics firm Revance. Revance, which has been listed on the Nasdaq since 2014, makes injectable treatments such as plumping hyaluronic acid fillers and Daxxify, a Botox alternative.
Under the agreement, Crown will make a tender offer to acquire all of Revanceâs outstanding common stock shares for $6.66 in cash, an 111 percent premium to its 60 day volume-weighted average price, giving the business a total enterprise value of $924 million. As a result of the transaction which is expected to close by year-end, Revance will be delisted from the Nasdaq and the new company will be a private entity.
Revance is not profitable, and has made a loss each year since it was founded in 2002 with an accumulated deficit of $2.2 billion. In its second-quarter results published last week, net revenue increased 20 percent to $65.4 million, but the company said it expected to incur operating losses for the foreseeable future.
In a statement, Jeff Bedard, founder and chief executive of Crown, said the merger was a cornerstone of realising its long-term plans in the medical cosmetics space. âThis is a significant step forward in Crownâs vision to become a fully integrated global aesthetics and skincare company,â he said.
Mark J. Foley, Revanceâs chief executive, said the transaction would allow the company to broaden its provider network and offer more products.
The companies share synergies: Crown makes the popular SkinPen system, used for anti-ageing microneedling treatments, and a system designed for platelet rich plasma (PRP) facials, another trendy treatment popularised on reality television shows.
Crown sold the premium tanning brand Vita Liberata back to its founder, Alyson Hogg, in April, at more than a 50 percent discount.
The aesthetics space, which benefited from a post-pandemic âZoom boomâ is gaining momentum. Last week, LâOréal announced it had gained a 10 percent stake in Swiss injectable maker Galderma.
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