Shares of Physicians Formula Holdings Inc. rose more than 14 percent to $4.21 on Wednesday after the Azusa mass-market cosmetics and skin care company announced a deal to be taken private by San Francisco private equity firm Swander Pace Capital in a deal valued at about $65 million.

Swander has agreed to pay shareholders $4.25 a share in cash, a 15 percent premium over the stock's closing price on Tuesday. Shareholders still need to approve the deal, which is expected to close later this year.

Shares were downgraded from “outperform” to “in line” by equity analyst Lee Giordano at Imperial Capital LLC.

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