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
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