FORT LAUDERDALE, Fla., Aug. 16 /PRNewswire-FirstCall/ -- Parlux
Fragrances, Inc. (Nasdaq: PARL) announced today that it has entered into a
letter of intent to sell its Perry Ellis fragrance rights to Victory
International (USA) LLC ("Victory"). The letter of intent is subject to the
execution of a definitive agreement and the approvals associated therewith.
The letter of intent provides for Victory to pay Parlux a total of up
to $140 million, $120 million for the fragrance rights and up to $20
million for inventory. Payment terms include a non-refundable deposit of $1
million, $10 million for inventory at closing and up to $9 million upon
delivery of the inventory. The balance of $120 million for the rights would
be paid in sixty equal monthly installments of $2 million, commencing
ninety days after closing.
Ilia Lekach, Chairman and CEO of Parlux, stated, "Victory and others
have expressed an interest in acquiring our Perry Ellis fragrance rights in
the past. In view of our plans to develop other celebrity fragrance brands,
we decided the sale would be appropriate at this time. Perry Ellis has been
a very important part of our success and we believe that Victory is the
right party to handle this line in the future. Victory has done an
excellent job of handling the distribution of our Fred Hayman Beverly Hills
product lines and we are confident they will be equally effective with the
Perry Ellis brands, for which Parlux has developed a loyal and extensive
customer base around the world. Victory also holds the license for the
Carlos Santana fragrance brand, among others."
Anil Monga, CEO of Victory International (USA) LLC, said, "We are
familiar with Perry Ellis fragrance products and believe its acquisition
will strengthen the portfolio of fragrance products we now own. We are
pleased they accepted our letter of intent. The relationship with Parlux
over the years has been strong and we intend to pursue the necessary
approvals to finalize the acquisition within ninety days."
Parlux Fragrances, Inc. is a manufacturer and international distributor
of prestige products. It holds licenses for Paris Hilton fragrances,
watches, cosmetics, sunglasses, handbags and other small leather
accessories in addition to licenses to manufacture and distribute the
designer fragrance brands of Perry Ellis, GUESS?, XOXO, Ocean Pacific (OP),
Maria Sharapova, Andy Roddick, babyGund and Fred Hayman Beverly Hills.
Parlux may periodically release forward-looking statements pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, performance
or achievements of Parlux or its industry to be materially different from
any future results, performance or achievements expressed or implied by
such forward-looking statements. These risks and uncertainties include,
among others, future trends in sales and Parlux's ability to introduce new
products in a cost-effective manner. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of
the date thereof. Parlux undertakes no obligation to publicly release the
result of any revisions to these forward-looking statements that may be
made to reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
SOURCE Parlux Fragrances, Inc.
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Related links:
http://www.parlux.com
http://www.prnewswire.com/comp/674987.html /
CONTACT:
Ilia Lekach, Parlux Fragrances, Inc.,
+1-954-316-9008, ext. 8116
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