Playboy Enterprises, Inc. (NYSE: PLA) has been in talks to go private for some time. It appears to be happening. The company just announced this morning that Icon Acquisition Holdings, L.P., a limited partnership controlled by Hugh M. Hefner, will acquire the public shares of Playboy at a price of $6.15 per share.
The deal is a 56% premium to back when a going private deal was first announced in July 2010 and it still represents a 18.3% premium over the closing price on Friday.
Icon Acquisition Holdings L.P., has obtained equity commitments from Rizvi Traverse Management LLC and a debt commitment for the transaction from affiliates of Jefferies & Company, Inc.
The board of directors has approved the transaction after forming a special committee to evaluate the deal. Its decision was unanimous in favor of it.
Playboy CEO Scott Flanders will remain with the company in his current position and maintain a significant equity investment in Playboy.
After years of declining sales, maybe the Playboy empire will appear to be better off without having shareholders.
Playboy’s 52-week trading range is $3.04 to $6.10.
JON C. OGG
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
