Playboy to Sell 50% of China Business to Management Specialist UTG

(DealStreetAsia) — Nasdaq-listed global leisure lifestyle company Playboy Inc. has agreed to sell 50% of its China business to consumer brands operator UTG Brands Management Group for $122 million, while it retains the remaining half of the ownership.

Under the definitive agreements, the U.S.-based men’s lifestyle and entertainment magazine company will receive $122 million in total cash. This includes $45 million payable over two years in exchange for UTG’s acquisition of a 50% interest in the joint venture (JV) for Playboy’s China business, $67 million in guaranteed minimum distribution payments over eight years, and $10 million in brand support payments over the next three years.