Hustler magazine founder Larry Flynt is expanding his adult entertainment business.
His L.F.P. Inc. has agreed to acquire pay-per-view film distributor New Frontier Media for approximately $33 million. The company's TV programming services include Penthouse TV, and it also operates subscription web sites.
L.F.P. already owns TV networks, magazines, web sites, nightclubs and a casino.
Flynt, who was famously played by Woody Harrelson in the 1996 film The People vs. Larry Flynt, offered $2.02 per New Frontier share in the deal that would take the company private. Investors could get some additional money depending on how much cash the firm has when the deal closes.
New Frontier kicked off a review of its strategic alternatives this spring after an unsolicited takeover offer.
Among other suitors, Manwin Holding, which owns Playboy's digital and entertainment assets, including Playboy TV, offered $24.3 million for the company.
"The acquisition of New Frontier Media fits perfectly with our strategic plan for the growth of our company," said LFP president Michael Klein. "The addition of these assets to our portfolio strengthens us significantly moving forward."
The acquisition is expected to close by year's end.