Playboy nears deal to acquire sexual wellness chain Lovers

According to sources familiar with the matter at hand, Playboy Enterprises Inc is nearing a deal to acquire the parent company of sexual wellness chain Lovers as it seeks to grow its lifestyle brand following the closure of its eponymous magazine.

The potential deal marks Playboy’s latest effort to leverage its famous rabbit silhouette logo to expand in the consumer products space. It has already capitalized on its brand value and sells a wide range of goods starting from apparels to art.

The deal would value Lovers-parent company TLA Acquisition Corp at around $25 million and could be announced as early as later today, said sources on the condition of anonymity since the details are yet to be made public.

Earlier last year, Playboy agreed to go public by merging with blank-check acquisition company Mountain Crest Acquisition Corp in a deal that values it at $413 million, including debt.

Following the expected closure of the deal in February 2021, Playboy will become a publicly traded company again, having been taken private in 2011 in a $207 million deal led by its late founder, Hugh Hefner, and private equity firm Rizvi Traverse Management.

Lovers operates online as well as across 41 stores in five U.S. states, selling a sexual wellness and health goods including lingerie and intimacy products.

In 2020, Playboy ceased publication of its magazine, ending a nearly seven-decade run on newsstands that began in 1953 with a debut issue featuring Marilyn Monroe.



Categories: Creativity, Entrepreneurship, HR & Organization, Strategy

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