Parlux Fragrances based in Fort Lauderdale, FL., entered a letter of intent to sell its Perry Ellis fragrance rights for as much as $140 million. The sale to Victory International LLC is subject to a definitive agreement and approvals.
According to Parlux, the letter of intent provides for Victory to pay Parlux up to $120 million for the fragrance rights and up to $20 million for inventory. Parlux said payment terms include a $1 million non-refundable deposit, $10 million for inventory at closing and up to $9 million upon delivery of the inventory.
The balance of $120 million would be paid in 60 equal monthly installments of $2 million, starting 90 days after closing, Parlux said.
Ilia Lekach, Parlux chairman and chief executive officer, said Parlux’s plans to develop other celebrity fragrance brands meant selling the Perry Ellis rights would be appropriate.
‘Victory has done an excellent job of handling the distribution of our Fred Hayman Beverly Hills product lines and we are confident they will be equally effective with the Perry Ellis brands, for which Parlux has developed a loyal and extensive customer base around the world,’ Mr. Lekach said.
Victory chief executive officer Anil Monga said the Edison, N.J.-based company intends to pursue the necessary approvals to finalize the acquisition within 90 days.