Perry Ellis International Re-Acquires Perry Ellis Brand Fragrance License from Parlux

by Grant Osborne, 07 December 2006

Perry Ellis International has announced that it has signed a definitive agreement and re-acquired from Parlux Fragrances all rights, titles, interests, intangible assets and inventory that Parlux had pursuant to a global license agreement to manufacture and distribute perfumery, fragrances, lotions, toiletries and cosmetics under the Perry Ellis brand.

George Feldenkreis, Chairman and Chief Executive Officer of Perry Ellis, commented: "We believe this agreement will allow our company to strengthen and further develop these important product categories for future growth. We have had a long partnership with Parlux and acknowledge their contribution to the development of these categories. We believe that this action will assist us in providing future shareholder value and at this point will be carefully evaluating various alternatives including possible licensing of these categories."

The agreement to re-acquire the Perry Ellis fragrance license and related inventory in a cash transaction of approximately $63 million is effective as of December 6th 2006, subject to potential closing price adjustments for confirmation and valuation of inventory levels. Perry Ellis will fund this acquisition with its revolving credit facility.

Parlux acquired the Perry Ellis license from Sanofi Beaute in 1994.