Chicago – Playboy Enterprises on Monday announced a deal
with Icon Acquisition Holdings, an entity controlled by founder Hugh Hefner, to
take the company private in a deal valued at $177 million. The purchase price
of $6.15 per share represents an 18.3% premium over Playboy’s closing share price
on January 7.

Icon Acquisition obtained equity commitments to fund the
transaction from an affiliate of Rizvi Traverse Management, and a debt
commitment from affiliates of Jeffries & Company.

“With the completion
of this transaction, Playboy will come full circle, returning to its roots as a
private company,” said Hefner.

“The brand
resonates today as clearly as at any time in its 57-year history. I believe
this agreement will give us the resources and flexibility to return Playboy to
its unique position and to further expand our business around the world.”

Playboy CEO Scott Flanders will remain in his current position, and retain a
significant equity investment in the company.



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