AZUSA, Calif. — Beauty brand Physicians Formula Holdings has received an unsolicited, nonbinding proposal to acquire all its outstanding shares of common stock at a price of $4.90 per share.
The proposal is subject to several conditions, including the completion of due diligence and securing of financing commitments by the third party who submitted the proposal and the negotiation of a mutually acceptable definitive agreement.
In accordance with the terms of the merger agreement that was entered into on Aug. 14 between the company and affiliates of private equity firm Swander Pace Capital, the company and its representatives are in discussions and negotiations with the third party who submitted the acquisition proposal.
As discussions and negotiations with the third party could terminate at any time, the company stated that its board of directors has not changed its recommendation with respect to the company's pending merger with affiliates of Swander Pace Capital to be effected pursuant to the merger agreement. The company's board of directors is continuing to evaluate the acquisition proposal.