BERLIN/OTTAWA/HONG KONG — A Singapore-based unit of CDH Investments, a global private equity group, has acquired a "significant" stake in WOW Tech Group, the companies announced today in a joint statement. Reps describe the move as an investment in the "long-term prospects of the global sexual wellness industry."
WOW Tech is the 2020 XBIZ winner for Pleasure Products Company of the Year.
"WOW Tech identified an opportunity to leverage the company’s strong reputation with consumers for its superior product quality and technological innovation, to accelerate expansion globally," a rep explained. "Consequently, management and shareholders decided to bring in a financial partner to support WOW Tech’s continued quest for product and service excellence, while further growing its valuable relationships with key retail partners in existing and new geographies."
CDH "intends to invest significant resources into WOW Tech's innovation and marketing activities to further grow the business."
Singapore-based Thomas Lanyi, managing director of CDH, expressed excitement about the partnership.
"We identified the tremendous potential of the industry and had been actively searching for a high-quality, professionally managed company to commit our capital and expertise," he said. "During the course of last year’s discussions, we developed strong confidence in the management, products and business model of the WOW Tech organization. The company is the industry’s leading innovator with strong technological know-how, a genuine care for consumers’ needs and a relentless commitment to delivering premium quality products that consumers love. CDH will strongly support the continuation of the current business platform and add significant resources to empower the management team around CEO Johannes von Plettenberg to accelerate the global expansion of the company, organically and through acquisitions.”
Von Plettenberg echoed Lanyi's enthusiasm.
"In recent years, WOW Tech has worked intensively to build strong relationships and become a reliable and trustworthy partner for retailers worldwide. With CDH, we found an investor that is committed to continuing that path of striving for excellence in our products and services with us," he said. "We are very excited and are looking forward to WOW Tech’s ongoing development."
Reps note the management of WOW Tech and a group of German investors, advised by Rigeto Unternehmerkapital, remain shareholders and "continue to hold strategic and operative functions."
