Yesterday, Crown Laboratories, the company behind brands like Blue Lizard sunscreen and the premium skincare line Strivectin, announced a significant merger with Revance, a medical aesthetics firm known for its injectable treatments such as hyaluronic acid fillers and Daxxify, a Botox alternative. The merger, valued at $924 million, will see Crown acquiring all of Revance’s outstanding common stock shares at $6.66 per share, a substantial 111 percent premium on its 60-day volume-weighted average price.
Once the deal, expected to close by the end of the year, is finalized, Revance will be delisted from the Nasdaq, and the newly formed entity will become a private company. Despite Revance’s consistent financial losses since its inception in 2002, with an accumulated deficit of $2.2 billion, the company has seen growth in revenue, reporting a 20 percent increase in net revenue to $65.4 million in its second-quarter results.
Crown’s founder and CEO, Jeff Bedard, described the merger as a pivotal move in the company’s strategy to become a fully integrated global aesthetics and skincare leader. Revance’s CEO, Mark J. Foley, echoed this sentiment, emphasizing that the deal would enhance the company’s ability to expand its provider network and product offerings.
Both companies share synergies in the aesthetic treatments space, with Crown producing the SkinPen system for microneedling treatments and a system for platelet-rich plasma (PRP) facials. This merger comes at a time when the aesthetics industry is experiencing growth, bolstered by trends like the post-pandemic “Zoom boom,” which has driven demand for cosmetic treatments.
