Dec. 23 (Bloomberg) -- Perfumania Holdings Inc., the operator of more than 370 perfume shops, agreed to buy manufacturer Parlux Fragrances Inc. in a deal valued at about $170 million to add a direct supply of products.
The offer of $7.91 to $8.55 per share is more than double Parlux’s $3.40 closing price yesterday, the companies said today in a statement.
The deal would give Perfumania control over its largest trading partner and the maker of the Mark Ecko, Paris Hilton and Nicole Miller fragrance brands. Parlux may solicit competing offers for 30 days.
“Parlux brings a wealth of products and expertise as a licensee manufacturer and international distributor,” Perfumania Chief Executive Officer Mike Katz said in the statement.
Perfumania, based in Bellport, New York, rose 0.8 percent to $19.70 at 4:30 p.m. in New York. The shares have more than doubled this year. Parlux increased 2.1 percent to $3.47. The stock has gained 18 percent this year.
Holders of Fort Lauderdale, Florida-based Parlux can choose to take $4 in cash and 0.20 share of Perfumania or .53333 of a share of the acquirer. The limit on the number of Perfumania shares that could be issued in the transaction is 5.92 million, and a maximum of $61.9 million in cash may be distributed, the companies said.
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