CITY OF INDUSTRY and AZUSA, Calif. — Markwins announced on Wednesday that it has acquired all of the outstanding securities of Physicians Formula for $75 million or $4.90 per share in cash.
Physicians Formula stockholders also received a special 3.5 cent per share dividend as part of the transaction. The $4.90 per share price represents a premium of approximately 33% to Physicians Formula's closing stock price on Aug. 14, 2012 (the trading day prior to the announcement that Physicians Formula entered into a merger agreement with affiliates of Swander Pace Capital), and a premium of approximately 40% to Physicians Formula's one-month volume-weighted average price as of that same date.
Markwins stated that the acquisition of Physicians Formula represents a major step toward its strategy to add an up-market brand in the "masstige" cosmetics space to its existing entry-point Wet 'n Wild brands. This is Markwins' second acquisition following its acquisition of AM Cosmetics in 2003.
Ingrid Jackel, chairwoman and CEO of Physicians Formula, will become an executive of Markwins and will, along with the rest of her management team, continue overseeing Physicians Formula under Markwins' ownership.
"Markwins' mission is to bring the best beauty products within a brandscape that most appeals to our customers and consumers on a global spectrum. Our company's diversified vertical integration model enables us to achieve this objective in the most efficient parameter. The addition of Physicians Formula will broaden Markwins' scope and service more beauty constituents around the world. The rich heritage and constant innovation from Physicians Formula elevates Markwins' portfolio and reinforces our longstanding pursuit in providing progressive products with a consumer-centric marketing strategy," stated Eric Chen, CEO of Markwin.