Cosmetics giant Revlon is set to buy Elizabeth Arden for $870 million (approximately Rs 5,835 crore). Through this deal, Revlon expects the two companies to earn some $3 billion together, and hopes to make profits from Elizabeth Arden's growing markets in the Asia-Pacific and other regions, BBC reported.

Revlon will pay $14 per share for Elizabeth Arden, which is a 50% premium on the skincare and fragrance firm's $-9.31 closing price on June 16. Revlon hopes to venture into the skincare and fragrances sectors with this acquisition, as it believes these products will complement its range of cosmetics as well as its haircare and men’s grooming products.

Revlon sells its products in some 130 countries, and Elizabeth Arden cosmetics and fragrances are available in more than 120 nations. “Combining our brands, talent, and global distribution will give our company a significant presence in all major channels and categories, while accelerating sales growth in existing and new geographic regions,” Chief Executive of Revlong Fabian Garcia said in a statement.

The acquisition is expected to be completed by end 2016 if shareholders and regulators give their approval. Revlon expects the partnership to bring in savings of some $140 million.