Del purchases Cornsilk oil-absorbing makeup line from Chattem for $10.8 mil..
This article was originally published in The Rose Sheet
Executive Summary
DEL TO REPOSITION CORNSILK AS "PROBLEM-SOLVING" COSMETICS LINE following the acquisition of the oil-absorbing foundation/powder brand from Chattanooga, Tenn.-based Chattem, Del Labs said. Under a deal completed May 12, Del (Uniondale, N.Y.) purchased Cornsilk for $10.8 mil., plus inventory and the assumption of certain liabilities. Del announced in February it was considering acquisitions to strengthen its product lineup in light of its "current financial strength"; the company generated sales of $263 mil. in 1997 ("The Rose Sheet" Feb. 16, In Brief). The company is financing the deal through a combination of short-term bank loans and its current cash flow. Chattem will continue to market Cornsilk in the U.K. under an existing licensing agreement.
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