Ronald Perelman is an American banker, entrepreneur, investor, and philanthropist. He is the owner of MacAndrews & Forbes Incorporated, a holding company with a diversified portfolio spanning industries such as food, tobacco, licorice, cosmetics, automobiles, photography, television, camping gear, security, gaming, jewelry, banking, and comic book publishing. Perelman holds major equity stakes in companies such as AM General, Deluxe Entertainment, Revlon, SIGA Technologies, RetailMeNot, Merisant, Scantron, Scientific Games Corporation, Valassis, vTv Therapeutics, and Harland Clarke.
Recognized as one of the world’s leading philanthropic donors, Perelman has consistently ranked among the top charitable givers. As of January 2019, he was the 49th richest person in the United States and 152nd in the world, with an estimated net worth of $9.4 billion. In September 2017, Forbes named him one of the “100 Greatest Living Business Minds.”
Early ventures and belmont industries
Perelman’s first significant business deal occurred in 1961, during his first year at the Wharton School of the University of Pennsylvania. Alongside his father, he purchased the Esslinger Brewery for $800,000. Three years later, they sold it at a $1 million profit.
While working at Belmont Iron Works—later renamed Belmont Industries—Perelman supported his father in various ventures. His overarching strategy was to acquire companies, divest non-core divisions to reduce debt and increase profitability, focus on core business operations, and then either sell the companies or keep them for cash flow. By 1978, twelve years after officially joining Belmont, he had risen to the role of Vice President. However, his ambition for more influence clashed with his father Raymond’s unwillingness to step aside. This disagreement led Perelman to resign and move to New York. The two remained estranged for the next six years.
Macandrews & forbes incorporated
In 1978, Perelman executed his first independent investment deal by acquiring Cohen-Hatfield Jewelers. He financed the deal with a loan from his then-wife, Faith Golding. Within a year, he had liquidated the company’s retail stores and focused exclusively on its profitable wholesale jewelry division, earning $15 million from the restructuring.
He soon acquired MacAndrews & Forbes, a distributor of licorice extract and chocolate. The acquisition was contested by management and shareholders through a failed legal challenge, but Perelman ultimately succeeded. In 1983, he began issuing bonds to acquire the remaining 66% of MacAndrews & Forbes Group Inc., taking the company private and establishing it as the core of his diversified investment empire.