"Physicians Formula Receives New Acquisition Offer Valuing It at
$67.1 Million," at 7:03 a.m. EDT, misstated the per-share offer
price and offer premium in the third paragraph and the total deal
value in the first paragraph and the headline. The corrected
version follows:
By Saabira Chaudhuri
Physicians Formula Holdings, Inc. (FACE) said it received a new
acquisition offer from an unnamed third party to buy it for about
$73.1 million.
The offer comes about three weeks after the cosmetics and
skin-care company agreed to be taken private by private equity firm
Swander Pace Capital in a deal that values it at roughly $65
million.
Physicians Formula's new suitor has offered to acquire it for
$4.90 a share, a 33% premium over its closing price on Aug. 14.
Swander Pace's $4.25 a share offer was revealed on Aug. 15.
Under its Physicians Formula brand name, launched in 1937, the
company markets premium-priced cosmetics products for the
mass-market channel. The company says it differentiates itself by
addressing skin imperfections through a problem-solving approach,
rather than focusing on changing fashion trends. Its products are
sold in over 25,000 stores including those operated by Wal-Mart
Stores Inc. (WMT), Target Corp. (TGT) and drugstores.
On Thursday, Physicians Formula said it is continuing to engage
in discussions and negotiations with the third party who submitted
the acquisition proposal. It noted it hasn't changed its
recommendations with respect to the its pending deal with Swander
as the third party offer is still uncertain. Its board is
continuing to evaluate the new proposal.
Physicians Formula's shares closed at $4.37 Wednesday and were
inactive premarket. The stock has climbed 37% in the past three
months.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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