The media company, which of course publishes the Playboy magazine but also runs an Internet business segment called Playboy Online, alongside TV and radio networks, will be taken private for $6.15 per share by Icon Acquisition Holdings.
The latter is a limited partnership controlled by iconic Playboy Enterprises founder Hugh Hefner (who also just got engaged, hurray!). Playboy originally went public in 1971.
The $6.15 price represents a 18.3% premium over the closing price Friday, January 7, and a 56.1% premium over the closing price on July 9, 2010, the last trading day before the proposal was first announced.
Icon Acquisition Holdings has obtained equity commitments for the transaction from an affiliate of Rizvi Traverse Management and a debt commitment for the transaction from affiliates of Jefferies & Company.
Playboy CEO Scott Flanders will remain with the company in his current position and maintain a significant equity investment in Playboy. He says the strategy is to transform the struggling Playboy into a full-fledged brand management company:
“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.”
More details on the transaction are available in the press release.
Playboy Enterprises, Inc. is a media and lifestyle company that markets the brand through a wide range of media properties and licensing initiatives. The company publishes Playboy magazine in the United States and abroad and creates content for distribution via television networks, websites, mobile platforms and radio. Playboy began as an American men’s magazine, founded in Chicago, Illinois in 1953, by Hugh Hefner and his associates. In addition to the flagship magazine in the United States, special nation-specific...