MacAndrews and Forbes
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| Private | |
| Industry | Diversified holding |
| Genre | Holding |
| Founded | 1984 |
| Founder | Ronald Perelman |
| Headquarters | New York City, New York, United States |
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Key people
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Ronald Perelman, Chair & CEO Paul G. Savas, EVP & CFO |
| Products | Cosmetics, vehicles |
| Services | Cosmetics and Entertainment to Biotech and Military |
| Owner | Ronald Perelman |
| Subsidiaries |
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| Website | www.macandrewsandforbes.com |
Ronald Perelman, Chair & CEO
Barry F. Schwartz,
MacAndrews & Forbes Incorporated is an American diversified holding company wholly owned by billionaire investor Ronald Perelman. Current investments include leading participants across a wide range of industries, from cosmetics and entertainment to biotechnology and military equipment.
MacAndrews & Forbes & Co. was founded in 1850 by Edward MacAndrews and William Forbes, a distributor of licorice extract and chocolate.
In 1978, Perelman purchased a 40% stake in Cohen-Hatfield Jewelers, and in 1980, Perelman, through Cohen-Hatfield Jewelers, bought MacAndrews & Forbes & Co. Through the purchase, Cohen-Hatfield Jewelers was merged into what became MacAndrews & Forbes Group Inc.
In 1983, Perelman formed MacAndrews & Forbes Holdings, Inc. to take MacAndrews & Forbes Group Inc. private. Perelman started selling bonds to acquire the remaining 66% stake in MacAndrews & Forbes Group Inc.
Also in 1983, MacAndrews acquired Technicolor Inc. The divisions were sold off and, in 1988, its core business was sold to Carlton Communications for 6.5 times the purchase price. Using the proceeds from the Technicolor division sell off, MacAndrews & Forbes purchased a 20 percent stake in Compact Video Inc., a television and film syndication company. Ownership of Compact Video Inc. was increased to 40% in 1987 after the buyout of Four Star International. Despite the bond debt, in 1984, MacAndrews & Forbes purchased Consolidated Cigar Holdings Ltd. from Gulf & Western Industries, in addition to Video Corporation of America.
MacAndrews next purchased Pantry Pride Inc., in June 1985. Its three retail supermarket chains were sold off within months.
In 1985, Perelman also took on his biggest deal yet: The Revlon Corporation. Financed with over $700 million in junk bonds from Michael Milken's firm, Drexel Burnham Lambert, Pantry Pride Inc. offered to buy any or all of Revlon's 38.2 million outstanding shares for $47.5 per share when its street price stood at $45 per share. Initially rejected, Perelman repeatedly raised his offer until it reached $53 per share, while fighting Revlon's management every step of the way. Forstmann Little & Company swooped in and offered $56 per share. A brief public bidding war ensued, and Perelman triumphed with an offer of $58 per share. As a result, Perelman paid $1.8 billion to Revlon's shareholders, but he also paid $900 million in other costs associated with the purchase.
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Wikipedia