Martha Stewart Living Omnimedia Acquires Emeril Franchise for $50 Million
Martha Stewart Living Omnimedia (MSLO) announced yesterday that it has completed the acquisition of Chef Emeril Lagasse’s media and merchandising business, giving MSLO the rights to the franchise’s television programming, cookbooks, Emeril.com and licensed kitchen and food products. The purchase price was $50 million—$45 million in cash and $5 million in stock—but could reach $70 million if certain performance targets are met in 2011 and 2012.
Emeril will retain rights to his restaurants and foundation.
“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,” says Susan Lyne, president and CEO of MSLO. “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.”
MSLO said it expects the assets from this deal to generate $8 million in the first full year of operations.