Playboy Enterprises, which ranked No. 44 on the exclusive License! Global’s Top 125 Global Licensors report, announced its intent to become a privately held company. Playboy, which generates $900 million in retail sales of licensed products worldwide, is focused on transforming into a brand management company.
Hugh Hefner's limited partnership Icon Acquisition Holdings will offer shareholders $6.15 per share, an 18.3 percent premium over the $5.20 per-share closing price on Friday, Jan. 7. Rizvi Traverse Management and Jefferies & Company will help finance deal.
Current CEO Scott Flanders remains in that position, and will steer the company from magazine publishing toward a brand management model.
"Our strategy is to transform Playboy into a brand management company," says Flanders. "This transaction will advance our efforts by strengthening our balance sheet and streamlining our operations, while creating opportunities to participate in new ventures. I am excited about the future, and I look forward to working with our new partners as we guide Playboy into the next era."
“With the completion of this transaction, Playboy will come full circle, returning to its roots as a private company,” says Playboy founder Hugh Hefner. “I believe this agreement will give us the resources and flexibility to return Playboy to its unique position and to further expand our business around the world.”