Daily Management Review

Playboy may announce $25m purchase of adult retail chain Lovers


02/01/2021


Playboy Enterprises plans to announce the acquisition of the sexual health retailer as early as Monday. Lovers operates online and through 41 shops in five US states.



Thure Johnson
Thure Johnson
Playboy Enterprises may announce its acquisition of sexual health retailer Lovers on the first day of February. The chain, which includes an online shop and 41 offline outlets in the US, is valued at $25m, Reuters reported, citing sources close to the deal. 

The deal is being valued by the retail chain's parent company TLA Acquisition at around $25 million and could be announced as early as Monday, agency sources said. Playboy is developing its own lifestyle brand after closing its eponymous magazine in 2020. Under the famous logo with the silhouette of a rabbit, the company mainly sells products in four categories: sexual health, stylish clothes, games, beauty and cosmetics in 180 countries (about $3 billion in sales worldwide). 

In October 2020, Playboy agreed to go public by merging with Mountain Crest Acquisition (SPAC, a specially created company) in a deal worth $413m, including the company‚Äôs debt. On 21 January, the companies submitted a final application to the Securities and Exchange Commission (SEC), with the SPAC shareholder meeting scheduled for 9 February. According to Playboy CEO Ben Cohn, the next phase of the company's growth will take place "under the PLBY Group banner" as a public company.  Following shareholder approval of the merger, the company "will trade on NASDAQ under the ticker PLBY," Kohn said.

Playboy will retain a management team led by Ben Cohn.  Playboy ceased to be a public company in 2011 in a deal between founder Hugh Hefner (who died in 2017) and private equity firm Rizvi Traverse Management. Playboy-branded merchandise is sold in more than 10,000 major retail shops in the US and online. Lovers trades both online and through 41 shops in five US states, selling adult sexual health products, including lingerie and intimate goods. Playboy in 2020 discontinued its magazine in its 67th year of publication. The magazine began publishing in 1953, with its debut issue featuring Marilyn Monroe.

source: reuters.com