Revlon cosmetics company has agreed to buy perfume company Elizabeth Arden for $ 870 million, The Wall Street Journal reported.

It is reported that the company will pay $14 per share, a 50% premium to the company’s closing stock price. Revlon will use $ 2.6 billion of financial commitments from BofA and Citigroup, as well as $ 1.8 billion for long-term loans to fund the purchase.

WSJ writes that the purchase of Elizabeth Arden will increase presence of Revlon in spheres of skin care and perfumes, as well as will extend the geographical presence of the company. After the deal is reached, annual sales of the companies should make about $3 billion.

Representatives of the companies declared that the deal would be completed by the end of 2016, the newspaper reported.