Playboy is hopping into the steaming-hot SPAC space.
The iconic adult-entertainment brand is joining the super-hot special acquisition company club, with official plans to go public in a SPAC deal that values the storied brand at $415 million, the company said Thursday.
The SPAC deal, which will make Playboy a public company for the second time in its history, involves being acquired by a blank-check firm, in this case Mountain Crest Acquisition Corp. (MCAC), which was set up earlier this year and trades on the Nasdaq.
As part of the deal, Playboy will receive $58 million that Mountain Crest had raised, plus another $50 million in private investment in public equity, or PIPE, proceeds brought in from institutional investors.
Playboy is the latest among a growing roster of firms to join the SPAC craze. Other companies to go public via blank-check companies recently include Virgin Galactic Holdings, sports-betting company DraftKings (DKNG) - Get Report and United Wholesale Mortgage, which revealed its own $16.1 billion SPAC deal on Wednesday.
Playboy CEO Ben Kohn said the deal with Mountain Crest will put more than $100 million in unrestricted cash on the company’s balance sheet, allowing it to expand further into e-commerce and the lingerie and intimate-accessories space.
Under its mission of "Pleasure for All," the 66-year-old Playboy brand drives more than $3 billion in annual sales at retail across 180 countries, according to the company.