Sequential Brands Group has closed on the acquisition of Martha Stewart Living Omnimedia Inc. for $6.15 a share, in a cash and stock deal.
Martha Stewart will continue to serve as chief creative officer of the brand she founded. She will also become a significant shareholder in Sequential and a member of its board of directors.
The companies reached an agreement last June, as reported.
The merger adds a new vertical to Sequential’s platform, which is expected to drum up about $4 billion in annual global retail sales from a combined portfolio in the home, fashion, lifestyle and active categories.
MSLO reaches about 100 million consumers across all media platforms each month through such retailers as Macy’s, The Home Depot, PetSmart, Michaels and Staples. The merger also brings the Emeril Lagasse culinary brand, including food and cookware product lines, TV and book publishing properties and the founder to the Sequential portfolio.
With the merger, MSLO will cease to be traded.
For the third quarter ended Sept. 30, MSLO had a total operating loss of $1.3 million, inclusive of $1.1 million in merger transaction costs, compared to a total operating loss of $14.9 million in the third quarter of 2014. Revenues were $17.5 million for the quarter, compared to $29.6 million a year ago.