German Famous Adult Toy Company WOW Will Merge with LoveHoney

Reported by Grand View Research, global sales of adult erotic products grew 26% to $33.6 billion in 2020.

According to the Wall Street, the two companies have reached an intention to cooperate on Aug. 11 after several rounds of negotiations, and an official announcement could be made as early as Thursday.

The new combined company is valued at about $1.2 billion.For now,the global demand for adult erotic products is now steadily increasing.

WOW Tech Group (Germany) and Lovehoney (UK) are two of Europe's leading adult products companies, offering sex toys, erotic lingerie and body lubricant products to retailers and consumers. Their high-end erotic brands Womanizer, Fifty Shades of Grey, Lovehoney and Arcwave have considerable popularity.

The merger of WOW Tech and Lovehoney will result in a new company called Lovehoney Group, which is expected to generate more than $400 million in revenue this year, making it one of the largest adult sexual health companies in the world.

The combined company, valued at more than $1.2 billion, believes that the adult erotic industry will continue to grow and that even if people do not have to quarantine at their homes after the COVID-19 is over, it will still not impact the demand for adult erotic products.

The combined company will aggressively pursue business in North America and Asia, and may seek more and larger acquisitions.

Johannes Plettenberg, CEO of the Lovehoney Group, says: “Sexual wellbeing products have gained a mainstream position in today’s market, supported by liberalisation, acceptance of sexual awareness, and the influence of popular culture.

He is rumored to continue as CEO of the new company after the merger.