New York-based makeup company Revlon, controlled by billionaire Ron Perelman, has acquired Elizabeth Arden for US$14 a share, totalling US$870m.

Investors in the company speculated earlier in the year that Revlon could become a target for acquisition but has instead moved to become a buyer to gain clout in the beauty industry and build a bigger portfolio of brands to sell through its international network.

“Revlon plans to build upon Elizabeth Arden’s ongoing transformation by further enhancing the brand,” said Fabian Garcia, chief executive, Revlon.

Perelman bought Revlon in 1985 with cash and moved to take the company private, however, settled when faced with lawsuits from the company’s investors.

This is not the first time Elizabeth Arden has been in the buyout process, with South Korea’s LG Household & Health Care Ltd looking to acquire the company in 2014, ultimately deciding against the deal.