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Still A Good Thing? Sequential Brands, Martha Stewart Living Deal Goes Through For $6.15/Share

Still A Good Thing? Sequential Brands, Martha Stewart Living Deal Goes Through For $6.15/Share
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Sequential Brands Group Inc (NASDAQ: SQBG) agreed to pay $6.15 a share to acquire Martha Stewart Living Omnimedia, Inc. (NYSE: MSO).

Martha Stewart shares fell nearly 14 percent to $6.02 a share, possibly because the market was expecting a higher take-out price.

The deal, valued at $353 million, is comprised of a 50-50 split between cash and stock.

Martha Stewart's share price spiked about 25 percent last week when The Wall Street Journal first reported a potential deal with Sequential on Thursday.

Its current market capitalization of about $345.8 million is off about 6 percent since last week's high.

Sequential, a consumer brands company with a market cap of about $680.9 million, owns brands including The Franklin Mint, Ellen Tracy, William Rast and Caribbean Joe.

Sequential traded recently at $17.16, up $0.16.

Related Link: Luxury Retail Expert Says Sequential-Martha Stewart Deal Would Be A 'Win-Win'

Under the terms of the agreement, the 73-year-old Martha Stewart will be named chief creative officer and will become a significant stockholder.

Martha Stewart in October licensed its magazines Martha Stewart Living and Martha Stewart Weddings titles to Meredith Corporation (NYSE: MDP).

Stewart on Monday said that with its former media business operations now moved to Meredith, "we now have the opportunity to expand our merchandising business both domestically and abroad."

Merchandising is now Martha Stewart Living's biggest business, according to WSJ and amounted to about $11 million of its $17 million in sales in the first quarter.

Posted-In: Martha StewartNews M&A Best of Benzinga


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