Markwins closes acquisition of Physicians Formula
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.
Organix-South develops new TheraNeem Naturals dental floss
BOWLING GREEN, Fla. — Organix-South, whose products are sold at health food stores, pharmacies, yoga studios and other outlets, has expanded its oral care line by introducing TheraNeem Naturals dental floss in mint and cinnamon flavors.
The floss is naturally coated with organic extracts of Neem leaf and Neem bark along with grapeseed, licorice, fennel, clove, peppermint and vegan wax. Diabetic-safe and suitable for both adults and children, the new product along with the entire TheraNeem Naturals oral care line is sulfate-free, fluoride-free, paraben-free, cruelty-free and made without artificial colors or flavors, the manufacturer stated.
Organix-South’s oral care products use the power of Neem, a tree native to India and Southeast Asia that has been used for thousands of years as a holistic approach for healthier teeth and gums, as well as fresh breath. Neem is commonly referred to as the “village pharmacy” for its versatile and diverse uses. Organix-South stated that it uses only organic and fairly traded Neem in its products.
Along with the new dental floss, the line is also comprised of Neem toothpaste, Neem tooth and gum powder and Neem mouthwash.
Organix-South is a division of the Nutraceutical subsidiary Nutragarden.
NPD Group: Men’s grooming tools are hot this holiday
NEW YORK — Men’s grooming tools are all the buzz this holiday as men’s grooming appliances purchased for the holidays gained 34%, now representing 12% of dollar sales for the year, according to the NPD Group.
“Today, men’s grooming trends get almost as much Hollywood buzz as women’s hairstyles and red carpet fashion,” stated Debra Mednick, executive director of the NPD Group’s home business. “Whether it is a perfectly manicured mustache, a smooth shave or just a daily grooming ritual, men are tending to themselves more and more.”
Men’s grooming appliances include men’s electric shavers, facial trimmers, home hair clippers, pen trimmers, body groomers and nose/ear trimmers.
The NPD Group found, in the 12 months ended Oct. 12, that:
Dollar sales of men’s grooming appliances increased by 5%. Eighteen percent of men’s grooming dollars came from gift purchases, and these gift purchases increased 36% compared to last year;
Men’s grooming appliances purchased for the holidays gained 34%, now representing 12% of dollar sales for the year;
Online sales of men’s grooming appliances grew 29%, representing 15% of dollar sales this past year;
Males account for 60% of sales, but female purchases of men’s grooming appliances increased 20%; and
25- to 34-year-olds and 45- to 54-year-olds each purchased 20% of units sold . Pen trimmers saw the largest growth, up 28% in both units and dollars.
Regarding Black Friday and Cyber Monday performance:
Compared with last year, men’s grooming appliance sales experienced a decline during the 2012 Black Friday week, but got a slight boost the week of Cyber Monday with a 2% increase in dollar sales;
Pen trimmers got the largest boost during both Black Friday and Cyber Monday weeks, with significant double-digit increases in both units and dollars;
Cyber Monday was most important for the men’s shaver business; and
Men’s electric shavers experienced more than a 5% increase in dollar sales during Cyber Monday week, but declined in sales during Black Friday week.