Physicians Formula Holdings, Inc. and private equity firm Swander Pace Capital have entered into a definitive merger agreement under which affiliates of Swander Pace will acquire Physicians Formula. Under the terms of the merger agreement, Swander Pace, through its affiliates, will acquire all outstanding shares of the common stock of Physicians Formula for $4.25 per share in cash, or approximately $65 million.
Upon close of the merger, Physicians Formula will be privately owned and will continue to be operated by the company's current management team and employees. Physicians Formula, founded in 1937 by Dr. Frank Crandall, will remain based in Azusa, California, US.
"The acquisition of Physicians Formula reinforces Swander Pace's investment focus on lower middle-market consumer products industry companies," said Mo Stout, a Swander Pace managing director. "Physicians Formula is a pioneer in the cosmetics industry, and we are committed to working with its management team on this next stage of growth and innovation for the company."
The transaction, subject to various closing conditions including receipt of Physicians Formula stockholder approval, is expected to close later this year.