FOH Holdings (who are the parent company for Fredrick's of Hollywood) and Movie Star Inc. announced today that they will be merging, allowing Fredrick's to become a publicly traded company. There is no need to explain who Fredrick's of Hollywood is or what they sell, but for those of you who may not know about Movie Star Inc., they are an apparel company that sells women's sleepwear and underwear to stores like Wal-Mart.
I automatically thought that this would mean that Wal-Mart might now get an "upgrade" to their lingerie section, but the deal doesn't allow it and both companies will remain separate and not sell each other's wares in the same location.
While the merger may not have any real effect on those looking to purchase lingerie, Fredrick's of Hollywood shareholders could not be happier about the merger. The shareholder's will now get 23.7 million shares of newly issued Movie Star stock worth $30.6 million. How's that for a Christmas gift?