Playboy enters joint venture with UTG for China operations in US$122m agreement

Hong Kong – Playboy has entered an agreement with United Trademark Group (UTG), a consumer brands operator in the Greater China area, to sell 50% of its business in China, Hong Kong, and Macau for US$122m. 

Under the agreement, Playboy will receive US$45m payable over two years for UTG’s 50% stake in the joint venture, US$67m in guaranteed minimum distribution payments over eight years, and US$10m in brand support payments over three years. UTG has already paid a US$9m deposit, with initial closing expected by 31 March 2026.

Playboy stated that the guaranteed minimum distribution payments will equal or exceed its current net cash flows from China. The company also expects additional annual distributions from its remaining 50% ownership as UTG grows the business.

“Partnering with UTG allows them to make a meaningful investment in the future of the brand in China, positioning Playboy for sustained, long-term growth in one of the world’s most important consumer markets,” said Ben Kohn, chief executive officer of Playboy. “In addition to the $122 million of contracted payments, we expect that our continuing 50% ownership will provide meaningful upside, while materially simplifying our operating model.”

At least US$50m of the proceeds will be used to reduce Playboy’s debt. The company said the transaction is expected to be immediately accretive to earnings, including the anticipated reduction in interest expense.

“Looking ahead, we will leverage a global perspective combined with strong local insight to reimagine and strengthen the brand’s appeal—remaining true to its heritage of gentlemanly leisure while embracing the spirit of diversity and innovation that defines the modern era,” added Wenming Zhang, chief executive officer of UTG. “We believe this partnership will be as solid as bedrock and as radiant as the stars, and we look forward to jointly creating a new chapter of shared success at the intersection of business and culture.”