Perfumania Holdings, Inc. announces merger with Parlux Fragr

Perfumania Holdings Inc. and Parlux Fragrances Inc. announced in late December that they have signed a definitive merger agreement under which Perfumania would acquire all of the outstanding shares of Parlux in a transaction valued at approximately USD 170 million, based on Perfumanias closing stock price of USD 19.55 per share on December 22, 2011.

Based on that Perfumania stock price and depending on the stockholder elections described below, the merger agreement values a share of Parlux stock at between USD 7.91 and USD 8.55. Parluxs closing market price on December 22, 2011 was USD 3.40 per share, and there were 20,769,362 shares of Parlux common stock outstanding on that date. Parlux stockholders will be entitled to elect between mixed stock and cash consideration and principally stock consideration under the merger agreement. The very next day Parluxs stock went up 77% and closed over USD 6.00 a share.