Martha Stewart Living Omnimedia, Inc. has completed the acquisition of Chef Emeril Lagasse’s media and merchandising business. Lagasse retains his restaurant and foundation-related assets. The deal, which was first announced in February 2008, brings together one of the biggest brands in food-related content with MSLO’s well-established expertise in the lifestyle arena. The closing of the deal was announced today on the Emmy-winning daily, nationally syndicated television series, The Martha Stewart Show.
Under the terms of the deal, MSLO has acquired the rights to the Emeril Lagasse franchise, including television programming, cookbooks, emerils.com website, and licensed kitchen and food products.
“We’re delighted to have finalized this transaction and to welcome Emeril to the MSLO family. This acquisition is strategically important to our company as we continue to expand and diversify our business and represents a significant opportunity for us going forward. Emeril brings with him a strong and successful brand with superb food-related content and product lines. We look forward to applying our expertise in managing multiplatform lifestyle brands to further build and develop the high-quality Emeril franchise,” said Susan Lyne, President and Chief Executive Officer of MSLO.
The purchase price was $50 million, $45 in cash and $5 million in stock, at closing, and could reach up to $70 million if certain performance targets are realized in 2011 and 2012. MSLO expects the assets to generate adjusted EBITDA of approximately $8 million in the first full year of operation, based on the Emeril business’ non-GAAP financial results.