Ronald Perelman
Ronald Perelman | |
|---|---|
| Born | January 1, 1943 Greensboro, North Carolina, U.S. |
| Occupation(s) | Financier, entrepreneur, investor, philanthropist |
| Known for | Head of MacAndrews & Forbes Incorporated; ownership of Revlon, Marvel Comics, and other companies |
Ronald Owen Perelman (; born January 1, 1943) is an American financier, entrepreneur, investor, and philanthropist. He serves as the head of MacAndrews & Forbes Incorporated, a firm with investments spanning numerous industries such as grocery retail, cigars, licorice products, cosmetics, automotive, photography, television production, outdoor equipment, security services, gaming, jewelry, banking, and comic book publishing. Perelman holds substantial ownership interests in entities including Deluxe Entertainment, Revlon, SIGA Technologies, RetailMeNot, Merisant, Scantron, Scientific Games Corporation, Valassis, vTv Therapeutics, and Harland Clarke.
Previously, he controlled a majority share of AM General but divested most of his holdings by 2020 due to financial strains and elevated leverage from buyout activities. In early 2020, Revlon—acquired by Perelman during the 1980s—underwent a debt restructuring process. His net worth decreased from an estimated $19.8 billion in 2018 to approximately $1.9 billion by November 2022.
Early life and education
Born on January 1, 1943, in Greensboro, North Carolina, Perelman is the son of Ruth (née Caplan) and Raymond G. Perelman. Raised in a Jewish household in Elkins Park, Pennsylvania, he descends from Litvak immigrants. His family was involved in managing American Paper Products Corporation before his father acquired Belmont Iron Works, a firm specializing in structural steel fabrication.
He completed his secondary education at The Haverford School in 1962. From an early age, he gained business insights by attending board meetings with his father starting at eleven years old. Their dynamic has been explored extensively in various business narratives.
Perelman began his higher education at the Villanova School of Business but transferred after one semester to the Wharton School of the University of Pennsylvania, earning a bachelor's degree in business administration in 1964 followed by an MBA in 1966.
In September 2017, Forbes recognized Perelman among the "100 Greatest Living Business Minds."
Belmont Industries
Perelman's initial significant transaction took place in 1961 during his freshman year at the Wharton School of the University of Pennsylvania. Together with his father, he acquired Esslinger Brewery for $800,000 and sold it three years later for a profit of $1 million.
At Belmont Iron Works (which later became Belmont Industries), Perelman collaborated with his father on corporate acquisitions. Their strategy involved purchasing companies, divesting non-essential segments to decrease liabilities and enhance earnings, then either selling or retaining these businesses for cash flow purposes. By 1978—after formally joining Belmont Industries twelve years earlier—he held the position of vice president but sought increased authority. When his father declined to relinquish control, Perelman resigned and moved to New York City, leading to a six-year period of estrangement between them.
MacAndrews & Forbes Incorporated
In 1978, Perelman executed his first independent purchase by acquiring Cohen-Hatfield Jewelers using financing from his wife, Faith Golding. He promptly sold off its retail operations while keeping the profitable wholesale division intact, generating $15 million within twelve months.
He took control of MacAndrews & Forbes, a distributor specializing in licorice extract and chocolate products, overcoming resistance from management and shareholders through legal action. In 1983, he issued bonds to buy out the remaining 66% ownership stake and privatize MacAndrews & Forbes Group Inc.
That year also saw MacAndrews acquire Technicolor Inc.. Despite carrying bond-related debt, in 1984 the company purchased Consolidated Cigar Holdings Ltd. from Gulf & Western Industries along with Video Corporation of America. Technicolor's divisions were subsequently divested; by 1988 its main business was sold to Carlton Communications at a valuation 6.5 times higher than its original purchase price. The proceeds supported acquiring a 20% interest—and eventually a controlling stake—in Compact Video Inc., which specialized in television and film syndication.
In 1989, Perelman bought New World Entertainment, incorporating David Charnay's Four Star Television as part of Compact Video's operations; this increased ownership to 40%. After Compact Video ceased operations, its assets were absorbed into MacAndrews & Forbes. Four Star became a subdivision under New World through this transaction. The same year involved refinancing junk bonds with bank loans. Most film and home video assets of New World were sold in January 1990 to Trans-Atlantic Pictures—a company established by former executives.
Under Perelman's guidance as chairman and CEO, MacAndrews & Forbes transformed into a diversified holding entity fully owned by him. By 1989 it included ownership of Marvel Comics, which filed for bankruptcy during his tenure; he eventually sold Marvel in 1997. The company's current portfolio features holdings such as Deluxe, Revlon, SIGA Technologies, VTV Therapeutics, and as of late 2019 maintains a 39% share in Scientific Games. However, by the third quarter of 2019 MacAndrews & Forbes enlisted Goldman Sachs to evaluate strategic alternatives for Revlon.
Perelman's transactions also encompass dealings with Revlon Corporation; acquisition of savings institutions totaling $315 million—including renaming one as First Gibraltar Bank—and investments in companies like Coleman Company, Sunbeam Products, and New World Entertainment.
Morgan Stanley
On February 17, 2005, Perelman initiated legal proceedings against Morgan Stanley, accusing the firm of being aware of Sunbeam's difficulties and intentionally deceiving him. Following a trial lasting five weeks, the jury awarded Perelman damages amounting to $1.45 billion. This verdict attracted attention partly because Morgan Stanley had previously declined a $20 million settlement proposal. The firm challenged the ruling, arguing that Florida law was improperly applied instead of New York law and asserting that the jury demonstrated bias.
In 2007, an appellate court overturned the decision, determining that Perelman failed to prove actual harm caused by Morgan Stanley’s conduct. Subsequently, the Florida Supreme Court unanimously rejected his appeal with a 5–0 vote. Despite these outcomes, Perelman attempted to reopen the case based on claims that certain email evidence had been withheld; however, the trial court denied this motion. As of January 2009, he persisted in efforts to revisit the matter through Florida’s 4th Circuit Court.
According to Bloomberg on September 18, 2020, Perelman liquidated his Gulfstream 650 jet along with his 257-foot yacht due to financial strains linked to the pandemic.
Personal donations
Perelman contributed $125,000 to Donald Trump’s 2017 campaign through Trump Victory. In 2015, he donated half a million dollars each to Super PACs supporting Lindsey Graham and Jeb Bush.
His significant charitable contributions include establishing the Ronald O. Perelman Institute for Judaic Studies at Princeton University in 1995. He provided $20 million to the University of Pennsylvania for the creation of the Perelman Quadrangle, $10 million to New York University for the Ronald O. Perelman Department of Dermatology, $4.7 million to Princeton for its Jewish Studies institute bearing his name, and $20 million to the Guggenheim Museum. Between 2006 and 2008, his donations totaled $63.5 million across organizations such as Weill Medical College of Cornell University, Stand Up to Cancer, the World Trade Center Memorial Fund, Ford's Theatre, Carnegie Hall, and the World Trade Center Memorial.
In 2008, he gifted $50 million to New York Presbyterian Hospital and Weill Cornell Medical Center to establish the Ronald O. Perelman Heart Institute and support centers dedicated to reproductive medicine. He holds a position on the board of the Police Athletic League of New York City and was recognized by the New York Police Foundation in 2011 for his philanthropic efforts.
From 2013 onward, Perelman's generosity included $50 million for NYU Langone Medical Center’s Ronald O. Perelman Center for Emergency Services; $25 million for a new Economics and Political Science Center at the University of Pennsylvania; $100 million toward Columbia Business School’s Manhattanville campus expansion featuring the Ronald O. Perelman Center for Business Innovation; and $75 million aimed at reviving plans for a performing arts venue at the World Trade Center site.
In May 2015, he took over as Chairman of Carnegie Hall from Sanford I. Weill and has hosted annual fundraising events for the Apollo Theater since 2010, generating millions each year.
In August 2021, Princeton University decided to remove Perelman's name from a newly constructed dormitory after his foundation did not fulfill a promised $65 million gift.
Greenmail
During the late 1980s, Perelman was accused of practicing greenmail, a strategy where an investor acquires a substantial portion of a company's shares and then compels the company to repurchase those shares at a premium to prevent a hostile takeover. Perelman asserted that his objective was to gain full ownership of the companies he pursued.
The initial greenmail claim emerged in 1986 when he bought an 8.2% interest in CPC International at approximately $75 per share and sold it back a month later through Salomon Brothers for $88.5 per share, earning a $40 million gain. Although suspicions arose about possible price manipulation, both sides denied that this constituted greenmail.
A more prominent incident involved Perelman’s 1986 attempt to acquire Gillette. He accumulated 13.8% of the company and proposed a $4.12 billion offer. After encountering legal obstacles and accusations of insider trading, Perelman described relinquishing his stake back to Gillette as his biggest regret. The transaction collapsed when Gillette discouraged Ralston Purina’s intended 20% acquisition, prompting Perelman to sell his shares to Gillette rather than Ralston Purina, which subsequently withdrew its bid.
In April 2001, M&F Worldwide acquired Perelman's 83% ownership in Panavision for $128 million—four times the company's market valuation. Since Perelman had control over M&F Worldwide, other shareholders expressed concern that the deal primarily served his interests. At that time, M&F Worldwide was financially robust, whereas Panavision was operating at a loss. Perelman defended the transaction by highlighting Panavision’s prospects amid the industry's transition to digital cinematography. Nevertheless, M&F Worldwide’s stock price fell from six dollars to three, signaling shareholder doubts. When Perelman proposed a $15 million settlement to resolve disputes, a judge deemed it insufficient, leading him to revoke the deal altogether.
Fred Tepperman
Fred Tepperman became Perelman's chief financial officer in 1985 after departing from Warner Communications. He was instrumental in executing all significant transactions during his seven-year tenure at MacAndrews & Forbes. Tepperman was unexpectedly terminated in late 1991 due to alleged neglect of responsibilities, which was linked to his caregiving for his wife afflicted with Alzheimer's disease. Claiming emotional distress from these circumstances, Tepperman sought $30 million based on his rising compensation—from $275,000 up to $1.2 million—and associated benefits. In response, Perelman filed a countersuit accusing Tepperman of defrauding the company by manipulating its retirement plan for personal advantage. After more than three years of legal proceedings, the matter was resolved through a confidential settlement.
Marriages
Perelman has entered into five marriages throughout his life. His first marriage was in 1965 to Faith Golding, an heiress to Sterling Bank's fortune; they divorced in 1984. His second wife was gossip columnist Claudia Cohen, with whom he was married from 1985 until 1994. In 1995, he wed socialite Patricia Duff, but their marriage ended the following year in 1996. From 2000 to 2006, he was married to actress Ellen Barkin. On October 13, 2010, he married Dr. Anna Chapman, a psychiatrist educated at Harvard University.
Faith Golding
Perelman met Faith Golding in 1965; she was an heiress to an estimated $100 million real estate and banking empire. The couple adopted three children and had one biological daughter named Debra. Their marriage concluded in 1984 amid accusations concerning Perelman's misuse of corporate funds and an extramarital relationship. The divorce was finalized swiftly with an estimated settlement exceeding $8 million.
Claudia Cohen
In 1984, Perelman encountered his second spouse, Claudia Cohen, at Le Cirque. Together, they had one daughter named Samantha, who was born in 1990. Perelman initiated divorce proceedings in August 1993, resulting in Cohen receiving a settlement exceeding $80 million. Following her passing from ovarian cancer in 2007, Perelman disclosed that he had privately financed research aimed at developing a vaccine for her treatment. To honor Cohen’s memory, he contributed $20 million to the University of Pennsylvania and renamed Logan Hall as Cohen Hall—an action that generated some debate among faculty members and alumni.
Patricia Duff
Patricia Duff became Perelman’s third wife after they met in the lobby of a hotel in Paris while both were still married—Perelman to Cohen and Duff to Mike Medavoy. After her divorce from Medavoy, Duff converted to Judaism and wed Perelman on January 25, 1995. Prior to their marriage, she gave birth to his fourth daughter, Caleigh Sophia.
Their union dissolved in 1996 amid a fierce custody dispute concerning Caleigh. Both parents sought sole custody, yet their prenuptial agreement did not address child support arrangements. Initially confidential, the divorce case became public following Duff’s request. The court-appointed psychiatrist diagnosed Duff with paranoia and narcissistic traits, while Perelman was noted to have significant anger management challenges. Controversy arose when Perelman testified that feeding his daughter cost approximately $3 per day. Both parties leveled accusations of physical abuse against each other.
Although the judge’s decision remains sealed, it is known that Perelman retained physical custody of Caleigh, while Duff was granted broad partial custody privileges.
Ellen Barkin
Perelman met his fourth wife, actress Ellen Barkin, at a Vanity Fair Oscar after-party in 1999. After about a year of dating, they married in June 2000. Their marriage lasted five years and was reportedly marked by tension largely due to Barkin’s acting commitments and frequent travel. In early 2006, Perelman filed for divorce—allegedly to avoid a prenuptial provision that would have increased alimony payments if the process was delayed. Estimates of Barkin’s annual alimony vary between $2 million and $3 million, with total sums paid ranging from $20 million up to $65 million.
In late 2007, both parties became involved in legal disputes over a film production company co-founded by Barkin and her brother George that Perelman was contractually obligated to finance. Perelman asserted the company was inactive and sought repayment, while Barkin pursued claims for outstanding investments. The litigation concluded with a confidential settlement four years later.
Anna Chapman
Perelman began a relationship with psychiatrist Dr. Anna Chapman in mid-2006. They have two children: a son named Oscar, born in November 2010, and another son, Ike, born in May 2012.
Judaism
Judaism has played a pivotal role throughout Perelman’s life. Raised within a Conservative environment and attending a Reconstructionist synagogue, he grew up with strong Jewish influences; his father contributed millions toward Conservative Jewish causes. At eighteen, during a family trip to Israel, he experienced a profound spiritual awakening:
I felt not just this enormous pride at being a Jew; I felt this enormous void at not being a better Jew. So I decided then to begin being a better Jew. As soon as I got married, we kept a kosher house, we became much more observant. We moved to New York shortly thereafter and joined an Orthodox synagogue and the kids grew up with much more Judaism surrounding them than I ever did.
Currently, Perelman strictly observes the Jewish Sabbath, dedicates three hours every Saturday to prayer services, maintains a kosher household, and contributes millions annually to Jewish organizations—especially supporting the Chabad-Lubavitch movement. Although not officially affiliated with Chabad-Lubavitch, he endorses their philosophy as essential for preserving Judaism’s vitality in contemporary society.
Homes
Perelman possesses "Près Choisis," now renamed "The Creeks," a 40-room villa designed in Mediterranean style located on Georgica Pond in East Hampton, Long Island. Originally constructed in 1899 by the artists Adele and Albert Herter, the property endured a severe fire in October 2018 that burned extensively for several hours. The insurance companies compensated approximately $141 million for the fire-related damages but rejected claims concerning five paintings valued at $410 million. As of November 2022, Perelman's legal action against the insurers remains unresolved and is under consideration by the New York Supreme Court.