Playboy magazine founder Hugh Hefner completed the purchase of Playboy Enterprises, meaning the company will once again be private owned. Icon Acquisition Holdings, an entity controlled by Hefner, paid $6.15 per share, or $207 million.
Affiliates of Rizvi Traverse Management and Jefferies & Company provided equity and debt financing, respectively, for the transaction. Hugh M. Hefner will remain Editor-in-Chief and Chief Creative Officer of Playboy, with Scott Flanders continuing in his role as CEO.
Mr. Hefner said, “Today marks the beginning of an exciting era for this company and our iconic brand. I believe this new ownership structure will allow us to further capitalize on the unique and global appeal of the Playboy brand, and I look forward to our future success.”
Mr. Flanders added, “Our partnership with Rizvi Traverse brings Playboy new resources and expertise, which will help us more quickly and efficiently execute on our strategy to transform Playboy into a brand management company. With this transaction completed, we can now turn our full focus on the effective management of our existing operations and the development of new business opportunities.
“Ben Kohn, Managing Partner of Rizvi Traverse’s Los Angeles Office, stated: “We are pleased to partner with Mr. Hefner and Mr. Flanders as this legendary brand enters a new chapter. We believe this team has the right strategy and vision, and now the right ownership structure, to fully realize its potential.”
Lazard is acting as financial advisor and Skadden, Arps, Slate, Meagher & Flom is acting as legal counsel to Playboy Enterprises. Raine Securities LLC is acting as financial advisor and Kaye Scholer LLP is acting as legal counsel to the Special Committee. Moelis & Company LLC is acting as financial advisor and Munger, Tolles & Olson LLP is acting as legal counsel to Mr. Hefner. Jefferies & Company, Inc. is acting as financial advisor and Sheppard, Mullin, Richter & Hampton LLP is acting as legal counsel to Rizvi Traverse.
USA, Los Angeles, CA
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