Cosmetics retailer Parlux Fragrances Inc 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. It 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."
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."
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