NEW YORK — Revlon Inc., whose cosmetics are the No. 1 brands in U.S. drug and discount stores, said Friday that it's in talks to sell its Latin American and professional brands, after billionaire financier Ronald Perelman failed to find a buyer willing to pay a high price for the struggling company.
Revlon said it will keep its brands that generate 80% of sales, led by its namesake, Ultima II and Almay cosmetics.
It's negotiating to sell its Latin American and salon hair-care operations, which generate annual sales of about $450 million, for more than $500 million. Revlon has total annual sales of $2.25 billion.
The company also warned it will have an unexpected loss this year, hurt by rising competition in the U.S., recessions in Russia and Latin America and $1.7 billion in debt left from Perelman's 1985 takeover.
The company expects a third-quarter loss, before charges, of $3.10 to $3.20 a share, and a 1999 operating loss, before charges, of $70 million to $80 million.
Shares of New York-based Revlon fell $6.25 to close at $12 on the New York Stock Exchange. The stock has lost more than a third of its value in the last 12 months.