Rihanna perfume maker bought by Perfumania

by Claude Solnik
Published: April 18, 2012
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Rihanna Parlux Fragrances PerfumaniaPerfumaniahas acquiredthe Florida-based firm that makes and markets the Paris Hilton, Rihanna and Queen Latifah fragrances sold in department stores and other retailers in a deal valued at $118 million.

The firms closed the deal after shareholders at Bellport-based Perfumania Holdings and Parlux Fragrances on Tuesday approved the deal.

Tradingof Fort Lauderdale, Fla.-based Parluxended Wednesday asthe firm becamesubsidiary of Bellport-based Perfumania, a wholesale distributor and specialty retailer of fragrances.

Perfumania is issuing about 6 million shares and paying about $62 million to Parlux stockholders, who willreceive 0.53 Perfumania shares or $4 and one-fifth of a Perfumania share for each Parlux share.

Perfumania, a publicly traded firm controlled by the Nussfdorf family, for its fiscal year ended Jan. 29, 2011 took a $3.7 million net loss on $484.8 million in sales.

Parlux for its fiscal year ended March 31, 2011, earned $1.2 million on $123 million of sales. The Nussdorfs also are a minority shareholder in Parlux.

Parlux markets fragrances under celebrity names such as Rihanna, Jessica Simpson, Nicole Miller, Queen Latifah, Paris Hilton and Mark Ecko.

Its products include Jessica Simpsons I Fancy You, Fancy, Fancy Nights and Fancy Love; Rebelle by Rihanna; and Paris Hilton fragrances Tease, Heir, Can Can and Heiress.

The combination of Perfumania and Parlux is a major step toward building a more significant and financially stronger designer fragrance and beauty products company, Perfumania CEO Michael Katz said. Parlux brings a wealth of products and expertise as a licensee, manufacturer and international distributor.

The companies in earlier Securities and Exchange filings said the merger will create a larger, independent, national vertically integrated manufacturer, wholesale distributor and specialty retailer of perfumes and fragrances.

Perfumania shareholders will own about 60 percent of the combined company, while Parlux stockholders will own about 40 percent.

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