A $439 million deal to sell Flavors Holdings, a maker of sweeteners and food products, to Whole Earth Brands Inc. was completed in June.
Further simplifying Perelman’s holdings, however, might be easier said than done.
Revlon’s $3 billion of debt would be a concern for any potential buyer. And Vericast, a collection of marketing and payments businesses, has struggled to navigate industry changes while dealing with its own substantial debt burden. Two of its major revenue streams are check printing and print-based advertising, both in decline due to digital payments and online marketing. Its RXSaver and RetailMeNot units are being shopped, indicating it may be easier to sell the company in parts than as a whole.
Even art sales can be troublesome. A Francis Bacon painting belonging to Perelman, valued at about $15 million to $23 million, was pulled from auction at the last minute due to a lack of interest. The art collection — which contains some of the most valuable 20th century works, including sculptures by Alberto Giacometti and paintings by Mark Rothko and Ed Ruscha — is now responsible for more than a third of his fortune.
There are signs that the turmoil is taking a toll within MacAndrews & Forbes, where several of Perelman’s most senior staff have exited in quick succession.
In July general counsel Steve Cohen departed, followed by spokesman Josh Vlasto and James Chin, who headed the capital markets group. Chief Financial Officer Paul Savas resigned in June over irregularities with $5 million in insurance payments between Revlon and MacAndrews & Forbes. He was replaced by Jeffrey Brodsky, who according to his LinkedIn profile, has “an extensive background in crisis and turnaround management.”
Still, those who know him well say any recent stumbles won’t define him.
“Ronald has been dealmaking at the highest level for forty years,” Moelis said. “Even Michael Jordan missed a shot.”
This article was provided by Bloomberg News.