Physicians Formula, which has just been ranked highest among mass market brands in this Harris Poll, has been bought by Markwins International Corp. The deal is expected to close later this year.

Prior, Physicians Formula had accepted a buyout offer from Swander Pace Capital, a private equity firm, but has ended that deal. The brand is now required to pay a termination fee of $1,285,000 to the affiliates of Swander Pace Capital. Clearly, execs at Physicians Formula saw the potential to benefit from Markwins 25-year history in cosmetics.

“We are pleased that Markwins has agreed to purchase our company,” said Ingrid Jackel, chairwoman and CEO, Physicians Formula. “Markwins and Physicians Formula sell non-competing brands in similar channels. Combining the resources and experience of both companies will strengthen the combined portfolio of brands,” she explained.

Markwins will acquire all of the outstanding shares of common stock of Physicians Formula for $4.90 per share in cash, or approximately $74.9 million. Physicians Formula will be owned by Markwins, but employees will continue to be based at the brand’s existing facilities in Azusa, CA.

Eric Chen, Marwins CEO stated: “Physicians Formula is widely recognized for its innovative beauty solutions and loyal customer base which makes it a natural complement to the ideology of all Markwins brands. Markwins believes this purchase reflects fair value to current shareholders, while delivering on the company’s expectations of high-growth and continued global expansion.”