Playboy nears deal to buy sexual wellness chain Lovers - sources

ConnectM Technology Solutions

31/01/2021 21:00

By Joshua Franklin
    Jan 31 (Reuters) - 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 shuttering of
its eponymous magazine, people familiar with the matter said on
Sunday. 
    The acquisition marks Playboy's latest effort to leverage
its famous rabbit silhouette logo to expand in the consumer
products arena. It already capitalizes on its brand by selling
everything from apparel to art. 
    The deal would value Lovers-parent company TLA Acquisition
Corp at around $25 million and could be announced as early as
Monday, the sources said, requesting anonymity as the details
were not yet public.     
    In October, Playboy agreed to go public by merging with
blank-check acquisition company Mountain Crest Acquisition Corp
 MCAC.O  in a deal that values Playboy at $413 million,
including debt.  urn:newsml:reuters.com:*:nL4N2GS28A
    Upon closing of the deal, which is expected in February,
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.
    Playboy last year ceased publication of its magazine, ending
a nearly seven-decade run on newsstands that began in 1953 with
a debut issue featuring Marilyn Monroe.    

 (Reporting by Joshua Franklin in Miami; editing by Diane Craft)
 ((joshua.franklin@thomsonreuters.com; +1 646-223-6356; Reuters
Messaging: joshua.franklin.thomsonreuters.com@reuters.net))