Crown Laboratories Strengthens Aesthetics Portfolio with Revance Therapeutics Acquisition

Crown Laboratories, Inc. ("Crown"), a privately held, global innovative leader in the skincare industry, has announced the successful closing of its acquisition of Revance Therapeutics, Inc. ("Revance") (NASDAQ: RVNC), a biotechnology company focused on setting the new standard in healthcare with innovative aesthetic and therapeutic offerings. This strategic move reinforces Crown's position as a leading, innovative, high-growth aesthetics and skincare company.

The acquisition of Revance by Crown is expected to have a positive impact on Crown's financial performance, both in the short and long term. By adding Revance's earnings to Crown's consolidated financials, Crown's earnings per share (EPS) is expected to increase. Revance's net income of $12.5 million in 2023 will now contribute to Crown's overall EPS. Additionally, the acquisition will improve Crown's return on assets (ROA) due to the addition of Revance's assets to Crown's balance sheet. As of December 31, 2023, Revance had total assets of $375.5 million, which will contribute to an improved ROA for Crown.



In the long term, the acquisition of Revance provides Crown with new growth opportunities in the aesthetics and skincare market. By combining Crown's and Revance's product portfolios, the company will have a more comprehensive offering, allowing it to tap into new customer segments and geographies. This growth potential will contribute to Crown's long-term financial performance. Additionally, Revance's focus on innovative aesthetic and therapeutic offerings will complement Crown's existing product portfolio, driving long-term growth and improved financial performance.

Crown expects to realize synergies from the acquisition, which will further enhance its financial performance. These synergies are anticipated to come from operational efficiencies, cost savings, and revenue growth. For instance, Crown mentioned that it expects to achieve annual cost synergies of $20 million within the first two years of the acquisition. These synergies will contribute to Crown's long-term financial performance and help the company maintain its competitive edge in the aesthetics and skincare market.

In conclusion, the acquisition of Revance by Crown Laboratories is expected to have a positive impact on Crown's financial performance, both in the short and long term, through increased EPS, improved ROA, synergies, growth opportunities, and innovation. By combining the strengths of both companies, Crown will be well-positioned to become a global leader in the aesthetics and skincare industry and create long-term value for its stakeholders.