UK-based Lovehoney, an eCommerce retailer, manufacturer, and distributor of adult pleasure products and accessories has merged with a German counterpart. Lovehoney, owned by Telemos Capital, operates websites in the US, Australia, France, Germany, Spain, EU, Canada, and New Zealand, as well as in the UK, and has a global customer base of 2.2 million. It is also well known for its licensing and branding deal with the author of the Fifty Shades of Grey books, EL James. The new combined business will be known as Lovehoney Group.
The Wow Tech Group was formed in 2017 and with investor backing acquired the Womanizer brand then merging with Canadian brand We-Vibe. CDH Investments acquired a majority stake in the business.
Johannes Plettenberg, CEO of Lovehoney Group, commented, “Sexual wellbeing products have gained a mainstream position in today’s market, supported by liberalization, acceptance of sexual awareness, and the influence of popular culture. Amorana, Lovehoney, and WOW Tech share the same mission to destigmatize sexuality, empower people to enjoy a fulfilling love life, and experience sexual happiness. Combined, Lovehoney Group will provide a specialist eCommerce platform with unmatched international reach, with the creator of the most well-known and innovative brands in the industry.”
Telemos Capital founder and executive chairman Philippe Jacobs and chief investment officer Jacob Polny issued a statement: “Lovehoney and WOW Tech will bring together a unique proposition for both business and individual customers, providing best-in-industry service and innovative products in more countries than ever. This sector is rapidly mainstreaming with the sexual wellbeing category now offered by high-street retailers. We foresee consumer demand accelerating around the world, and with the Lovehoney Group, we will continue to innovate and progress the whole sexual wellbeing market.”
Thomas Lanyi, managing director CDH Investments, adds, “The marriage of WOW Tech and Lovehoney, the leading branded manufacturer and truly global retailer of sexual wellbeing products, presents an extremely exciting opportunity. Joining forces will benefit all our stakeholders, while also advancing the general acceptance and recognition of our industry, in a broader economic and societal context.”
Lovehoney owner Telemos Capital will be lead investor in the newly formed LHG, with WOW Tech investor CDH Investments staying on board as a minority investor alongside Lovehoney co-founders Neal Slateford and Richard Longhurst. The combined entity has forecast sales of more than US $400 million in 2021, representing double the 2020 volume achieved separately by the businesses. Lovehoney Group will be led by WOW Tech CEO Johannes Plettenberg, with each company’s current management teams remaining in place. The merger also includes Amorana, the fast-growing Swiss sexual well-being retailer which was acquired by Lovehoney in September 2020.
The Lovehoney Group is now understood to be worth more than £850 million and employs a team of 300 people in Bath.
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