Martha Stewart Living Omnimedia made celebrity chef Emeril Lagasse a richer man, paying $50 million for a package that includes episodes of his TV shows, cookbooks, food and kitchen products and a Web site.
Martha Stewart Living is paying $45 million cash and $5 million in stock, and the total price could hit $70 million if certain performance targets are realized in 2011 and 2012. The transaction is expected to close in the second quarter.
Mr. Lagasse is selling the media company episodes of “The Essence of Emeril” and “Emeril Live,” 12 cookbooks bearing the celebrity chef’s name, as well as his Web site, Emerils.com. Martha Stewart Living also gets his Bam! B-Q Sauce and other food products, as well as his Emeril-branded kitchen products and tableware.
Mr. Lagasse joined The Food Network in 1993 and became one of its first break-out signature stars. The Food Network announced last November there would be no more new episodes of “Emeril Live,” which debuted in 1997.
“Everyone at MSLO is looking forward to welcoming Emeril on board. We are committed to giving him the freedom to continue doing what he does best: entertaining and inspiring food lovers everywhere,” company President and CEO Susan Lyne said in the announcement. “Emeril brings talent, energy and legions of fans to the Martha Stewart family, along with a powerful brand and an attractive, profitable business franchise.”
Ms. Lyne said Mr. Lagasse’s franchises complement Martha Stewart’s and offer multi-platform expansion opportunities.
“He brings to the MSLO fold a well-managed company with highly attractive EBITDA and cash flow levels that will contribute immediately to our performance,” Ms. Lyne said. “This acquisition is a significant one strategically as we expand and diversify our business by applying our expertise in managing multi-platform lifestyle brands.”
(Editor: Baumann)