NEW YORK — Faberge Inc. remains confident that it can buy Elizabeth Arden, one of the world's largest makers of prestige cosmetics, despite industry rumors that the deal will become another victim of October's stock market crash.
In August, Faberge, maker of Aqua Net hair spray, Brut cologne and other personal-care products for the mass market, said that it would buy the more exclusive Arden from Eli Lilly and Co. for $700 million.
If the transaction is completed, it will be one of the largest cosmetic acquisitions ever. The combination of Arden and Faberge will create a firm with annual revenue of more than $1 billion.
Arden makes higher priced cosmetics that are found primarily in department stores and appeal to older women. The company also operates the fashionable Red Door beauty treatment salons and Maine Chance spa.
In contrast, Faberge, which is owned by privately held Rapid-American Corp., owns brands that are found mostly in drug and discount stores. Its colognes tend to appeal to youthful customers.
The deal had originally been set to close Sept. 30.