NEW YORK–Martha and Emeril have teamed up. The decorating doyenne has announced the purchase of chef Emeril Lagasse’s television, cookbooks, Internet site, licensed kitchen products and food products for $50 million, which could reach up to $70 million if certain performance targets are realized in 2011 and 2012. The transaction is expected to close in the second quarter.
“Emeril brings talent, energy and legions of fans to the Martha Stewart family, along with a powerful brand and an attractive, profitable business franchise,” said Susan Lyne, president and chief executive officer, Martha Stewart Living Omnimedia.
Lagasse’s licensed kitchen products include cookware by All-Clad, cutlery by Wusthof and tableware by Wedgwood.
The deal is comprised of $45 million in cash and $5 million in stock. The businesses to be acquired had about $14 million in 2007 cash-basis revenue, a statement said, and MSLO expects those assets to generate earnings before income tax, depreciation and amortization of approximately $8 million in the first full year of operation.
“I first met Emeril more than 20 years ago, before he had opened his first restaurant,” said Stewart in a statement. “I have been an admirer ever since. … He made television cooking programs mainstream, opening the category to new audiences and proving that cooking is something everyone can enjoy.”
The deal did not include Lagasse’s 11 restaurants and corporate office.
