(Adds share prices, company background)
By Soyoung Kim and Olivia Oran
NEW YORK, April 24 Elizabeth Arden Inc
has hired Goldman Sachs Group to explore a sale and
reached out to a small group of potential buyers, according to
people familiar with the matter.
The U.S. cosmetics company decided to gauge buyer interest
after its share price has come under pressure in the last 12
months amid weak sales in North America, the people said.
Shares of Arden rose nearly 8 percent to $34.16 on the
Nasdaq on Thursday, giving it a market value of more than $1
The people asked not to be named because the matter is not
public. Representatives for Elizabeth Arden did not respond to
requests for comment, while Goldman Sachs declined to comment.
On Wednesday, South Korea's LG Household & Healthcare Ltd
said it was considering making a bid for Arden.
In addition to its namesake brand, Elizabeth Arden is known
for celebrity brand perfumes such as those of Taylor Swift and
Justin Bieber, as well as skin care brands like Ceramide and
Arden has been pressured by a pullback in spending on beauty
products among price consious shoppers. It is also largely
focused on the mass market fragrance market, which is viewed as
less attractive than skin care.
The company sells its products to U.S. chains such as
Wal-Mart Stores Inc, Target Corp and Kohl's Corp
, as well as department stores including Nordstrom Inc
and Macy's Inc.
Last quarter, North American sales, the bulk of its
business, fell 13 percent. Arden is also facing poor demand in
(Reporting by Soyoung Kim and Olivia Oran in New York,
additional reporting by Phil Wabha in New York)