Playboy is the latest company to join the SPAC frenzy, will go public after nearly 10 years private
- Playboy Enterprises is set to return to the public markets via a SPAC merger with Mountain Crest Acquisition.
- The merger is valued at $381 million, including net debt outstanding of $142 million.
- Playboy will trade under the ticker PLBY, and the deal is expected to close in the first quarter of 2021.
- Hugh Hefner, the late founder of Playboy, had taken the company private in 2011.
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Playboy Enterprises is set to return to the public markets via a SPAC merger with Mountain Crest Acquisition, adding to the SPAC craze that has taken off in 2020.
The late founder of Playboy, Hugh Hefner, had taken the magazine company private in 2011 with the help of private equity.
The merger is valued at $381 million, including net debt outstanding of $142 million. Playboy is set to receive more than $100 million in cash in the deal, which will be used to fund Playboy's growth plans.
The deal has been approved by the boards of both Playboy and Mountain Crest Acquisition, and is expected to close in the first quarter of 2021.
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According to the company, Playboy is projecting year-over-year growth of 68% in adjusted revenue and 106% in adjusted Ebitda in 2020. Additionally, the company has over $400 million in cash flows contracted through 2029.
Playboy will trade on the Nasdaq under the ticker PLBY once the merger is closed.