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Markwins Acquires Physicians Formula
The mass market May soon have a new powerhouse in the beauty aisle: a company that combines the strength of Markwins International Corp.'s value offering with Physicians Formula's premium-priced brand of problem-solution cosmetics.
The two companies have signed a definitive merger agreement under which Markwins will acquire outstanding shares of Physicians' common stock for $4.90 a share, or nearly $75 million.
That's a 15.3 percent premium to an offer that Physicians received in August from the private equity firm Swander Pace Capital of $4.25 a share, or about $65 million, which the company initially accepted. Physicians is now required to pay a termination fee of nearly $1.3 million to Swander.
Physicians' board unanimously approved the agreement with Markwins, and plans to recommend that shareholders vote...