After a series of unsolicited takeover offers, adult TV pioneer New Frontier Media has agreed to be purchased by LFP Broadcasting, part of the stable of companies owned by adult services legend Larry Flynt.
LFP Broadcasting has agreed to purchase New Frontier for $2.06 per share, or $33 million, a 59% premium to its Monday close of $1.30 per share.
According to a press release, LFP expects to close the deal in the fourth quarter.
New Frontier distributes adult channels The Erotic Networks, VaVoom, Penthouse TV, XTSY and Juicy, and received two unsolicited takeover offers from investment groups earlier this year. In July the company said it had created a special committee of independent directors to evaluate its strategic alternatives, including a sale.
LFP Broadcasting is an affiliate of LFP Inc., which markets and distributes the Hustler brand through a wide variety of media properties and licensing initiatives, including broadcasting, publishing, Internet, mobile, apparel, novelties, clubs and video. LFP also owns the Hustler Casino in Gardena, Calif. Its Hustler TV is available in 55 countries.
"The acquisition of New Frontier Media fits perfectly with our strategic plan for the growth of our company," said LFP President Michael H. Klein in a statement. "The addition of these assets to our portfolio strengthens us significantly moving forward."
The deal has been approved by New Frontier’s board of directors.
"This announcement represents a very positive outcome for our shareholders, who will receive complete liquidity for their shares at a very significant premium,” New Frontier’s board of directors said in a statement regarding the LFP deal. “We also believe that this transaction with LFP Broadcasting creates a great opportunity for our organization, cable television partners and customers as two of the premier adult media broadcasting companies join forces.”