The intently held European-based corporations behind Fifty Shades of Gray vibrators and different sexual wellness manufacturers mentioned they’ve agreed to merge in a deal that values the mixed firm at round $1.2 billion, amid growing international demand for intercourse toys fueled partly by the pandemic.
Germany’s WOW Tech Group is combining with Lovehoney, a U.Okay.-based on-line retailer, to supply a variety of intercourse toys, lingerie, and lubricants to retailers and shoppers. The businesses formally introduced the tie-up Thursday.
The Wall Road Journal beforehand reported the deal.
The deal comes as homebound shoppers throughout pandemic-induced lockdowns spurred demand for sexual wellness merchandise. Collectively, WOW Tech and Lovehoney, which shall be often known as the Lovehoney Group, shall be worthwhile and anticipate to generate gross sales of greater than $400 million this yr. That’s about double the mixed 2020 degree, making it the world’s largest sexual wellness firm measured by income, they are saying.
The merger, which values the mixed group at greater than €1 billion, equal to $1.2 billion, represents a guess that the sector’s development can proceed even because the rollout of vaccines permits extra individuals to depart their properties and socialize in teams. Lovehoney Group will function throughout North America, Europe and Asia, providing manufacturers corresponding to We-Vibe, Womanizer, and Arcwave. The businesses are additionally betting on the extra scale permitting them to hunt greater acquisitions.