Business
Playboy Expands Direct-to-Consumer and Retail Store Reach with Deal to Acquire Leading Sexual Wellness Omni-Channel Retailer
Furthers Leadership in Sexual Wellness Category LOS ANGELES, Feb. 01, 2021 (GLOBE NEWSWIRE) -- Playboy Enterprises, Inc. (the “Company” or “Playboy”), one of
About this update from Playboy, Inc.
[{"type":"text","content":"Furthers Leadership in Sexual Wellness Category\nLOS ANGELES, Feb. 01, 2021 (GLOBE NEWSWIRE) -- Playboy Enterprises, Inc. (the “Company” or “Playboy”), one of the largest and most recognizable lifestyle brands in the world, today announced that it has entered into a definitive agreement to acquire TLA Acquisition Corp., the parent company of the Lovers family of stores (“Lovers”) and a leading omni-channel online and brick-and-mortar sexual wellness chain, with 41 stores in five states. Lovers will further expand Playboy’s brand portfolio, digital commerce, and direct-to-consumer product sales capabilities, and provide an opportunity to capitalize on the important brick-and-mortar distribution channel that Lovers’ retail stores represent. The acquisition is expected to close in the first quarter of 2021. “The acquisition of Lovers represents yet another step in our growth as the leading platform for pleasure and leisure, and as the trusted provider for the sexual wellness consumer,” said Ben Kohn, CEO of Playboy, soon to be renamed PLBY Group upon the close of the Company’s merger with Mountain Crest Acquisition Corp (Nasdaq: MCAC) (“Mountain Crest”). “Building upon our significant year of growth in digital commerce, we’re excited to complement our existing line of sexual wellness products with an expanded D2C product portfolio, and to enhance our distribution platform with a new digital commerce store and a strong brick-and-mortar footprint focused on the sexual wellness consumer. Brick and mortar is a critical part of our distribution strategy in Sexual Wellness as it currently represents almost 70% of the category and is key to product discovery for consumers. We are also thrilled to welcome Barbara Cook, a highly respected leader in the retail and consumer products arena, and the whole Lovers team to Playboy. We look forward to continuing to deliver superior retail experiences to Lovers’ dedicated customers and to accelerating the growth of all of our businesses with these new shared capabilities and product offerings. Excluding one-time expenses associated with the deal, we expect this deal to be accretive for our shareholders.” The Company has signed a definitive agreement to acquire 100% of the equity of Lovers for a purchase price of approximately $25M of cash. Lovers is expected to contribute approximately $45M of reven...