12.27.11
Perfumania Holdings Inc., a fragrance retailer, has agreed to acquire Parlux Fragrances Inc. in a deal valued at $170 million.
Parlux manufactures and distributes fragrances and beauty products, and is one of Bellport, N.Y,-based Perfumania's largest trading partners. The acquisition puts the two companies back under one roof. Years ago, the two were headed by Ilia Lekach.
"Parlux brings a wealth of products and expertise as a licensee, manufacturer and international distributor," said Perfumania CEO Mike Katz said in a statement.
Perfumania will purchase the Fort Lauderdale, FL, company's outstanding shares with cash and stock.
Independent committees of both companies' board of directors have unanimously approved the deal, which is expected to close in the first half of next year.
The deal values each share of Parlux at a price between $7.91 and $8.55, assuming no adjustments are made to the companies' pact. Even at the low end, that price range amounts to a premium of more than double the $3.47 closing price of Parlux's stock on Friday.
Shares ended the regular session up 7 cents, or 2.1 percent. The stock added $2.98, or 86 percent, to $6.45 after the market closed. Perfumania stock dropped $1.92 to $17.78 after ending the regular session up 15 cents at $19.70.
For each share they own, Parlux shareholders may elect to receive either $4 in cash plus 0.20 shares of Perfumania common stock, or 0.53333 shares of Perfumania. Perfumania said that, at most, it will pay $61.9 million in cash and issue a maximum of 5.9 million shares.
The amounts are subject to certain adjustments in the deal, the companies said.
Parlux manufactures and distributes fragrances and beauty products, and is one of Bellport, N.Y,-based Perfumania's largest trading partners. The acquisition puts the two companies back under one roof. Years ago, the two were headed by Ilia Lekach.
"Parlux brings a wealth of products and expertise as a licensee, manufacturer and international distributor," said Perfumania CEO Mike Katz said in a statement.
Perfumania will purchase the Fort Lauderdale, FL, company's outstanding shares with cash and stock.
Independent committees of both companies' board of directors have unanimously approved the deal, which is expected to close in the first half of next year.
The deal values each share of Parlux at a price between $7.91 and $8.55, assuming no adjustments are made to the companies' pact. Even at the low end, that price range amounts to a premium of more than double the $3.47 closing price of Parlux's stock on Friday.
Shares ended the regular session up 7 cents, or 2.1 percent. The stock added $2.98, or 86 percent, to $6.45 after the market closed. Perfumania stock dropped $1.92 to $17.78 after ending the regular session up 15 cents at $19.70.
For each share they own, Parlux shareholders may elect to receive either $4 in cash plus 0.20 shares of Perfumania common stock, or 0.53333 shares of Perfumania. Perfumania said that, at most, it will pay $61.9 million in cash and issue a maximum of 5.9 million shares.
The amounts are subject to certain adjustments in the deal, the companies said.