LOS ANGELES, March 4, 2011 /PRNewswire/ -- Playboy
Enterprises, Inc., a Delaware
corporation ("Playboy"), today announced the closing of its
acquisition by Icon Acquisition Holdings, L.P. ("Purchaser").
Following the previously-announced expiration of the offer to
purchase all outstanding shares of Playboy's Class A common stock
and Class B common stock, Purchaser's wholly owned subsidiary Icon
Merger Sub, Inc. ("Sub") accepted for payment and purchased for
$6.15 per share, net to the seller in
cash, less any applicable withholding taxes, all shares validly
tendered in the offer (excluding shares tendered under guaranteed
delivery procedures) and effected a short-form merger with and into
Playboy. The merger was effective at 10:29
a.m. Eastern Time on March 4,
2011. Playboy's Class A common stock was suspended from
trading on the New York Stock Exchange prior to the market opening
on March 4, 2011, and Playboy's Class
B common stock was suspended from trading on the New York Stock
Exchange after the close of business on March 4, 2011. As a result of the merger, all
remaining outstanding shares of Playboy's common stock (Class A and
Class B) have been cancelled and, subject to appraisal rights under
Delaware law, have been converted
into the right to receive $6.15 per
share in cash, the same consideration paid in the offer.
Shares validly tendered in satisfaction of guaranteed delivery
procedures will also be accepted for payment and promptly paid the
same consideration paid in the offer.
As previously announced, affiliates of Rizvi Traverse Management
LLC (Rizvi Traverse) and Jefferies
& Company, Inc. 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. Both Mr. Hefner and
Mr. Flanders maintain equity stakes in Playboy through their
ownership interest in Purchaser.
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."
About Playboy Enterprises
Playboy is one of the most recognized and popular consumer
brands in the world. Playboy Enterprises, Inc. is a media and
lifestyle company that markets the brand through a wide range of
media properties and licensing initiatives. The company publishes
Playboy magazine in the United
States and abroad and creates content for distribution via
television networks, websites, mobile platforms and radio. Through
licensing agreements, the Playboy brand appears on a wide range of
consumer products in more than 150 countries as well as retail
stores and entertainment venues.
About Rizvi Traverse
Rizvi Traverse is a private
investment firm with offices in New
York, Los Angeles and
Birmingham, MI. Rizvi Traverse
partners with management teams to invest in market leading
companies across a range of industries. Rizvi Traverse currently has significant
investments in the media and entertainment sector. For more
information visit www.rizvitraverse.com.
SOURCE Playboy Enterprises, Inc.