#Playboy #sex
“Playboy is reiterating the age-old business mantra: Sex sells! — Paul Ebeling
PLBY, the pleasure lifestyle company, just off its public debut via a SPAC transaction in February is buying high-end lingerie and pleasure products maker Honey Birdette. The purchase price is $330-N in cash and stock, Playboy said in a release announcing the deal Tuesday morning. The transaction is expected to close in Q-3 of Y 2021.
Honey Birdette is Australia-based and founded in Y 2006. It currently has 60 stores globally, and recently opened a location in Las Vegas. Additional openings are expected soon in Dallas, Miami and New York City,.
The brand is profitable on an operating profit basis and has “high margins.”
Honey Birdette loungewear, swimwear and essentials collections are on tap, the sources say.
Playboy plans to leverage Honey Birdette’s infrastructure to help build out its own branded lingerie taking direct aim at Victoria’s Secret, among other synergies envisioned from the deal.
The deal is poised to be the 1st major one by Playboy CEO Ben Kohn.
Mr. Kohn joined Playboy as CEO in Y 2017. He has looked to reintroduce the brand to investors who may think it still makes glossy magazines featuring beautiful young women and sells them from the Playboy Mansion.
Instead, Playboy has sought to capitalize on its well-known brand by licensing it out for various consumer products such as apparel and personal care products.
Playboy shares are up 162% since debuting on the NAS on 11 February, the stock closed Tuesday, 29 June at 39.27.
Our outlook technically is Very Bullish long term with a speculative Buy rating with a 1yr target price at 50/share.
Have a positive day, Keep the Faith!
