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UPDATE 1-Physicians Formula gets rival buyout proposal
September 6, 2012 / 11:13 AM / 5 years ago

UPDATE 1-Physicians Formula gets rival buyout proposal

* Receives new offer at $4.90 per share

* Swander Pace had offered $4.25 per share

* New offer at a premium of 12 pct to Wednesday close

* Co says not yet determined bid as superior

Sept 6 (Reuters) - Cosmetics company Physicians Formula Holdings Inc, which in August agreed to go private with Swander Pace Capital, said it received a rival buyout offer of about $67.2 million from an unnamed party.

The new unsolicited, non-binding offer of $4.90 per share is at a 12 percent premium to Physicians Formula’s Wednesday close of $4.37. Swander Pace had agreed to pay Physicians Formula shareholders $4.25 per share in cash.

Physicians Formula, which is evaluating the new proposal, said its board has not yet determined that the bid is superior to Swander Pace’s proposal.

Founded in 1937, Physicians Formula sells high-priced cosmetics and skin care products at chains owned by Wal-Mart Stores Inc, Target Corp and Rite Aid Corp .

Shares of Physicians Formula, which has a market capitalization of about $60 million, have risen 19 percent since the Swander Pace deal was announced.

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