Playboy, Inc. – the Nasdaq-listed owner of Australian lingerie brand Honey Birdette – has agreed to repurchase approximately 16.6 million shares from funds managed by affiliates of Fortress Investment Group at a fixed price of US$1.05 per share, for total consideration of approximately US$17.4 million (~A$24.8m).
The deal, struck this week, eliminates the entire equity position held by Fortress and represents close to 15 per cent of Playboy's total shares outstanding.
Chief executive Ben Kohn said the company moved decisively on what he described as a compelling capital opportunity, citing the intrinsic value of the Playboy brand and five consecutive quarters of positive adjusted EBITDA.
"We have one of the largest and most valuable brands in the world and one that would be nearly impossible to replicate today," Kohn said. "We believe the intrinsic value of the Company is considerably higher than today's price and therefore this was an extremely compelling capital opportunity, and we moved decisively to seize it."
"The transaction is immediately accretive to earnings per share."
This comes after a major turnaround in Honey Birdette’s trading performance over the last few years, with the brand pulling back on discounting and focusing more on full price, as well as tightening ranges.
In the first quarter of 2026, Honey Birdette delivered 15 per cent year-over-year sales growth, with a gross margin of 57 per cent.
Playboy describes Honey Birdette as one of four key revenue drivers alongside its licensing, media and experiences, and hospitality businesses. The company has outlined plans to open five new Honey Birdette stores in the United States over the next 12 months.
With this buy-back deal, Playboy paid US$2 million at execution, with the remaining approximately US$15.4 million payable in three scheduled instalments through December 31, 2026. The company may accelerate purchases at its discretion.
The deal is fully backstopped by Rizvi Traverse Management and The Million S.a.r.l. — an affiliate of Byborg Enterprises SA — who have agreed to purchase any shares directly from Fortress, pro rata to their current Playboy stockholdings, to the extent the company does not complete the buyback.
Kohn said the structure delivered an orderly exit for Fortress while protecting existing shareholders from the market impact of a 16.6 million share sell-down on the open market.
"Together we structured a transaction that gives Fortress a clean, orderly exit while delivering extraordinary value to our shareholders," he said.
The share repurchase follows a run of operational milestones including the Byborg licensing deal, a China joint venture with United Trademark Group, and an accelerated reduction in senior debt — down from US$218 million to US$145 million over the 18 months to the end of the first quarter of 2026.