Lovehoney Group

History

2021: Lovehoney acquires WOW Tech for €1 billion and becomes the largest player in the sex toy market

On August 12, 2021, Lovehoney, a retailer, manufacturer and distributor of pleasure goods and accessories, and WOW Tech Group, a provider of premium sexual pleasure goods, announced a merger. As a result of a deal worth €1 billion (so much Lovehoney paid for the purchase of WOW Tech Group), the Lovehoney Group company was created.

The newly formed group will also include Amorana, a Swiss retail company selling sexual pleasure products, acquired by Lovehoney in September 2020. Additional financial terms under the transaction were not disclosed.

Lovehoney Group combines B2C sales and marketing expertise, a leading multi-channel distribution network and research capabilities, and a strong portfolio of brands and proprietary technologies. This deal will bring together some of the industry's most famous consumer brands, Fifty Shades of Grey, Happy Rabbit, Womanizer, We-Vibe and Arcwave.

Lovehoney and WOW Tech Group created the world's largest sex toy manufacturer Lovehoney Group

The group will operate in EMEA, APAC and North America, supported by more than 730 employees with a wide range of talent in the field of design, industrial design, sales and marketing. The group will continue to supply products to its retail partners and consumers and will be led by WOW Tech CEO Johannes Plettenberg.

After the merger, Telemos Capital will retain a controlling stake in the Lovehoney Group, while CDH, Neil Slateford, Richard Longhurst and Johannes Plettenberg will retain minority positions. Each of them will hold positions on the Board of Directors of the Lovehoney Group.

According to forecasts, in 2021 the Lovehoney Group will receive revenue in the amount of more than $400 million and will be profitable from the very beginning of its activities.

Products for sexual well-being have taken a leading place in the modern market thanks to liberalization, the adoption of sexual awareness and the influence of popular culture. Amorana, Lovehoney and WOW Tech share the same mission - to destigmatize sexuality, give people the opportunity to enjoy a full love life and experience sexual happiness. Teaming up, the Lovehoney Group will provide a specialized e-commerce platform with unparalleled international reach, with the creator of the most famous and innovative brands in the industry, "said Johannes Plettenberg, CEO of the Lovehoney Group.

Philippe Jacobs and Jacob Polney, chief investment officer of Telemos Capital, say:

Lovehoney and WOW Tech will combine a unique offering for both business and individual customers, providing industry-leading service and innovative products in more countries than ever. This sector is rapidly entering fashion, and the category of sexual well-being is now offered in retail. We anticipate that consumer demand will grow around the world, and together with the Lovehoney Group, we will continue to innovate and develop the entire sexual well-being market.

CDH Investments Managing Director Thomas Lanyi noted that combining WOW Tech and Lovehoney, a leading brand manufacturer and truly global retailer of sexual pleasure products, represents an extremely exciting opportunity. Pooling will benefit all of our stakeholders and will also contribute to the recognition and acceptance of our industry in a broader economic and social context.^[1]

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