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PLBY Group Expands Brand Portfolio with Honey Birdette Buyout

Global media and lifestyle company PLBY Group Inc. (PLBY) has agreed to acquire Honey Birdette in a stock and cash deal worth $333 million. The buyout is expected to close in the third quarter of 2021.

Founded in 2006, Honey Birdette is a luxury lingerie and lifestyle brand. For the twelve months ending June 30, 2021, it expects revenue of about $73 million.

With this acquisition, the company will be able to expand its brand portfolio and provide PLBY Group product design, sourcing, and direct-to-consumer capabilities.

Notably, Honey Birdette is in expansion mode with plans to set its retail footprint across the U.S., the U.K., and Europe. In the U.S., new flagship stores are expected to open in the coming months in Dallas, Miami, and New York. (See PLBY Group stock chart on TipRanks)

CEO of PLBY Group Ben Kohn said, “This acquisition is expected to further our mission to become the leading pleasure and leisure lifestyle platform and our commitment to deliver long-term value to our shareholders.”

Yesterday, Canaccord Genuity analyst Austin Moldow reiterated a Buy rating on the stock with a price target of $52. This implies 37.1% upside potential from current levels.

Moldow said, “Being part of the PLBY portfolio, we think, would jumpstart Honey Birdette’s US growth and give it even better global footing. And we think adding Honey Birdette’s team and expertise would give PLBY the capacity to create Playboy branded intimates apparel and accessories.”

Consensus among analysts is a Strong Buy based on 4 unanimous Buys. The average PLBY Group price target stands at $47.25 and implies upside potential of 24.6% from current levels.

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