Martha Stewart Living announced a merger agreement Monday that would see the company sold to Sequential Brands Group.
The brand management and licensing company, which owns the Avia athletic wear and Caribbean Joe brands, and owns a majority stake in the Jessica Simpson brand, will acquire 100 percent of the outstanding shares of Martha Stewart Living Omnimedia at $6.15 per share.
Sequential adds a new vertical to its platform with the Martha Stewart addition and the move is expected to generate $3.75 in annual global retail sales for the company.
Yehuda Shmidman, CEO of Sequential said, “Research shows that the Martha Stewart brand has 96 percent awareness among women in the U.S. and 7 out of 10 women say that Martha has and does influence the way they think about, organize, and manage their homes. Looking ahead, we believe that we can leverage our global activation platform at Sequential in partnership with Martha and her team to develop the next chapter of growth for the Martha Stewart brand. We are honored to have this opportunity and thrilled to be working together with Martha Stewart.”
Martha Stewart Living has licensed its media operations to Meredith and has a retail presence in stores like Macy’s, Michael’s and Home Depot.
The brand’s founder and namesake will stay on in a long-term role as chief creative officer, become a “significant” stockholder in the new public holding company, and will also be nominated to serve on its board of directors once the deal is closed.
“This is a transformational merger for Martha Stewart Living Omnimedia, the company I founded in 1997. This merger is positioned to further the growth and expansion of the unique Martha home and lifestyle brand,” Stewart said. “We now have the opportunity to tap into Sequential’s expertise and resources to expand our merchandising business both domestically and abroad.”