Supplier News Breaks Archives
Markwins wraps up Physicians Formula acquisition
December 12th, 2012
CITY OF INDUSTRY and AZUSA, Calif. – Markwins International has completed its purchase of Physicians Formula Holdings Inc., a deal valued at about $75 million.
Markwins said Wednesday that it has acquired all of the outstanding stock of Physicians Formula for $4.90 per share in cash. Physicians Formula stockholders also received a special 3.5 cents per share dividend as part of the transaction.
Plans call for Ingrid Jackel, chairwoman and chief executive officer of Physicians Formula, to become an executive of Markwins and, along with the rest of her management team, to continue overseeing Physicians Formula under Markwins' ownership.
"We are excited to be joining forces with Markwins International Corp. as this merger brings together two noncompeting, complementary brands in the same channel under one larger umbrella," Jackel said in a statement. "We look forward to continue to grow and expand the Physicians Formula brand globally with the support of our new parent company."
Markwins noted that the acquisition of Physicians Formula, announced in late September, is a major step in its strategy to add an up-market brand in the mass market prestige, or "masstige," cosmetics space to its entry-point wet n wild brand. The deal marks Markwins' second acquisition after its purchase of AM Cosmetics in 2003.
"Markwins' mission is to bring the best beauty products within a brandscape that most appeals to our customers and consumers on a global spectrum," stated Eric Chen, CEO of Markwins. "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."
Before entering into the agreement with Markwins, Physicians Formula terminated a $65 million deal to be acquired by affiliates of Swander Pace Capital. That agreement was announced in August.