PLBY (US:PLBY) Globenewswire·2026-02-09 13:51Core Viewpoint - Playboy, Inc. has announced the sale of 50% of its China business to UTG Brands Management Group for a total of $122 million, which includes guaranteed payments and brand support services, marking a strategic move to enhance its asset-light model and reduce debt [2][3][4]. Financial Details - The total cash received from the transaction will be $122 million, comprising $45 million for the 50% interest in the joint venture, $67 million in guaranteed minimum distribution payments over eight years, and $10 million for brand support services over three years [3]. - A minimum of $50 million from the proceeds will be allocated for debt reduction, which is expected to improve the company's earnings immediately [4]. Operational Changes - UTG will manage all operational aspects of Playboy's business activities in China, Hong Kong, and Macau, allowing Playboy to focus on its remaining 50% ownership and potential incremental annual distributions as UTG grows the business [2][3][6]. - The initial closing of the transaction is anticipated by March 31, 2026, subject to customary closing conditions [3]. Strategic Implications - The partnership with UTG is expected to position Playboy for sustained long-term growth in the Chinese market, leveraging UTG's expertise in managing leading international brands [6]. - The CEO of Playboy emphasized that this partnership will simplify the operating model while providing meaningful upside from the remaining ownership in the joint venture [6]. Company Background - Playboy, Inc. operates as a global pleasure and leisure company, utilizing its iconic brand to pursue an asset-light model across various sectors, including licensing and digital content [11]. - UTG Brands Management Group is a global leader in consumer brands, with a strong retail distribution network in China and a diverse portfolio generating over $1.5 billion in annual retail sales [7][8].