Physicians Formula – FACE – Receives Acquisition Proposal

Nasdaq:FACE) announced that it has received an unsolicited, nonbinding proposal to acquire all its outstanding shares of common stock at a price of $4.90 per share, subject to several conditions, including the completion of due diligence and securing of financing commitments by the third party who submitted the proposal and the negotiation of a mutually acceptable definitive agreement (the “Acquisition Proposal”).

In accordance with the terms of the Agreement and Plan of Merger (the “Merger Agreement”) that was entered into on August 14, 2012 between the Company and affiliates of Swander Pace Capital, the Company and its representatives have engaged in and are continuing to engage in discussions and negotiations with the third party who submitted the Acquisition Proposal. As discussions and negotiations with the third party could terminate at any time, the Company’s board of directors has not determined at this time that the Acquisition Proposal constitutes a Superior Proposal (as such term is defined in the Merger Agreement) and consequently has not changed its recommendation with respect to the Company’s pending merger with affiliates of Swander Pace Capital to be effected pursuant to the Merger Agreement. The Company’s board of directors is continuing to evaluate the Acquisition Proposal.

About Physicians Formula Holdings, Inc. – FACE

Physicians Formula (FACE) is an innovative cosmetics and skin care company operating in the mass market prestige, or “masstige,” market. Under its Physicians Formula brand name, created in 1937, FACE develops, markets and distributes innovative, premium-priced products for the mass market channel. FACE differentiates itself by addressing skin imperfections through a problem-solving approach, rather than focusing on changing fashion trends. Currently, Physicians Formula products are sold in over 25,000 stores including those operated by Wal-Mart, Target, CVS and Rite Aid.

FACE specializes in developing and marketing cosmetic and skin cares products for the mass market channel. The Company’s product focuses on addressing skin imperfections through a problem-solution approach. The Company’s cosmetic products address specific, everyday cosmetics needs and include face powders, bronzers, concealers, blushes, foundations, eye shadows, eyeliners, mascaras and brow makeup. The Company’s skin care products include cleansers, moisturizers and treatments. The Company’s products are being sold in over 25,000 of the 45,500 stores. The Company’s expertise is in color correction, which involves the use of opposite colors on the color wheel to neutralize skin imperfections, such as under-eye circles, red blemishes, scars or other skin discolorations. The Company sells its products in the mass market channel to retailers, such as Wal-Mart, Target, CVS and Rite Aid.

More Posts by this author

• Stocks End Marginally Higher
• Gold Prices Rally on QE Hopes; Silver Prices also Surge
• Stocks Headed for a Mixed Finish
• Stocks Struggle for Direction as Jobs Data Disappoints
• AG Mortgage Investment Trust – MITT – Stock Dividend of $0.77 per Share
• Trinity Industries – TRN – Reaches Agreement to Acquire Certain Assets of DMI Industries
• Accuray – ARAY – Preparing for Major Technology Releases

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.