Playboy sells 50% stake in China business, UTG Group takes over full operations

NightAirdropper · 2026-02-12T15:03:19+00:00

Huahua Company has signed an agreement with UTG Group to sell a 50% stake in its China operations, with a total transaction value of $122 million. UTG will take full management of the business. The deal is expected to be completed by 2026, and Huahua Company will receive dividend guarantees. Following the announcement, its stock price rose nearly 17%.

NightAirdropper

2026-02-12 15:03:19

Abstract generation in progress

DoNews, February 12 — According to an official announcement on February 9, local time, Playboy announced that it has signed a definitive agreement with UTG Group (United Trademark Group) to sell a 50% stake in its China operations. After the transaction is completed, UTG will fully manage Playboy’s business operations in mainland China, Hong Kong, and Macau.

Under the terms of the agreement, Playboy will receive a total of $122 million in cash: $45 million payable over two years as consideration for UTG’s acquisition of a 50% stake in the joint venture managing Playboy’s China business; $67 million as an eight-year minimum guaranteed dividend; and an additional $10 million in brand support payments over the next three years.

Additionally, UTG has paid a $9 million deposit. The initial closing of the transaction is expected to be completed before March 31, 2026, subject to customary closing conditions.

The agreement also states that Playboy will receive a minimum dividend guarantee each year, not less than the current net cash flow of its China operations, and as UTG expands its business, additional annual dividends from the remaining equity are expected.

Following the announcement, Playboy’s stock price surged, rising 16.98% on February 10 to $2.48 per share.

UTG was previously the exclusive distributor of the Playboy brand in mainland China and is the company’s largest strategic partner globally.

UTG is a leading global consumer brand management group headquartered in Shanghai, with offices in Toronto, Paris, and Milan. It manages over ten international brands, including Jeep (USA), and Italian brands such as VERRI, Alpina (Kangaroo), and Roberta di Camerino. In 2008, UTG also participated in the acquisition of Pierre Cardin.

Founded in 1953, Playboy is a globally renowned entertainment and leisure brand, with business spanning brand licensing, digital media, and consumer products. In recent years, the company has continued to pursue a light-asset strategy, focusing on global brand value expansion.

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