On Friday, shares of leading beauty retailer Elizabeth Arden are skyrocketing, up over 47% in morning trading after the company agreed to be purchased buy rival Revlon in a deal worth $420 million.

Under the terms of the deal, Revlon will pay $14 per share in cash for Elizabeth Arden, which suggests a premium of roughly 50% to RDEN’s Thursday closing price of $9.31. With the help of Bank of America Merrill Lynch and Citigroup, Revlon plans to use $2.6 billion of new financing to fund the acquisition, as well as to refinance Arden’s existing debt and most of its own $1.8 billion in long-term debt.

According to the Wall Street Journal, the combined company will help expand Revlon’s presence in categories such as skin care and perfume and give it a broader geographic footprint, creating a company with combined annual sales of roughly $3 billion.”

The acquisition comes just six months after Ronald O. Perelman, controlling shareholder and Chairman, announced he was exploring new business alternatives for Revlon. The company expects the deal to bring in $140 million in savings over the next three to five years.

The deal is expected to close by the end of 2016.

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