CEO Calls Off Deal to Take Parlux Private

A firm run by the chairman and chief executive officer of Parlux Fragrances has withdrawn its offer to take the company private. PF Acquisition of Florida LLC said it removed its offer as “a result of certain developments at Parlux.” The unsolicited $259.55 million offer, made June 14, was for $29 a share, in cash, for all outstanding shares. A board committee from Fort Lauderdale-based Parlux responded about a week later, voicing concerns about the offer’s “significant financial and other contingencies,” proposed break-up fee and other issues. Still, a shareholder class action complaint the following week alleged the takeover proposal was unfair to public shareholders, among other things. In calling off the deal, Parlux Chairman and CEO Ilia Lekach said the proposal to take the company private was intended to offer shareholders a premium over market value. But, he acknowledged the proposal triggered substantial interest in activities, he said, which, if pursued after the company became private, could be misconstrued. Since he made his offer, Lekach said, Parlux has received several significant offers from third parties to buy certain brands. “To serve the best interests of all shareholders, I asked my associates to withdraw the proposal to allow management and the board of directors to collectively focus on the new offers in the best interest of all shareholders,” he said.