Martha Stewart Buys Emeril Lagasse

By JULIETTE ROSSANT Martha Stewart Living Omnimedia (MSLO) announced that it was buying Emeril Lagasse's non-restaurant and foundation properties for an estimate $50 million. It isn't clear if this deal was in the works when Emeril and the Food Network agreed not to continue producing more Emeril Live! or not (Martha is also on FN). What is clear is that Emeril gets a big partner with deep pockets that can help him further expand his product and food lines into retail stores. This is what Susan Lyne, President and Chief Executive Officer of MSLO had to say in the press release: Emeril brings talent, energy and legions of fans to the Martha Stewart family, along with a powerful brand and an attractive, profitable business franchise. Emeril's high-quality food-related content and product lines complement our own, 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. This acquisition is a significant one strategically as we expand and diversify our business by applying our expertise in managing multi-platform lifestyle brands. What does this mean? The deal raises the benchmark for the whole Celebrity Chef space - much like when Wolfgang Puck sold his pizza and frozen food business ConAgra for $20 million or when Joachim Splichal sold his restaurant business to RA (and then bought it back) for $40 million or Robert Del Grande sold a stake in Cafe Express to Wendy's for $9 million (and then bought it back). These mega-deals demonstrate how much celebrity chef properties are worth and open up a market for further aggressive growth. Now Forbes and others will have an easier time coming up with an accurate figure for Emeril's net worth - and other chefs and food personalities (Rachael, Bobby, Paula, and Mario) will have an easier time valuing - and perhaps selling - their properties. Under the terms of the deal, MSLO acquires the rights to all of Emeril’s television programming, including The Essence of Emeril and Emeril Live!, as well as his segments as a food correspondent for Good Morning America. MSLO also acquires Emeril’s library of 12 cookbooks; his Web sites, including Emeril’s.com; his licensed kitchen products, including his All-Clad cookware; Tableware by Wedgewood; and food products like Essence seasoning. MSLO is steadily rebuilding the brand that Martha created and then nearly destroyed when she was convicted of conspiracy, obstruction and lying to federal investigators and sent to prison in 2004. Adding another strong personality, like Emeril can help the company further diversify away from Martha herself. Related News: Reuters AP Wall Street Journal CNNMoney Times-Picayune Broadcasting & Cable New York Times Houston Chronicle Previous articles: Emeril Live! No More Emeril Goes Gulf Coast Emeril Leads Space Race? Emerils Re-Opens in New Orleans Halloween: Emeril's Delmonico Cookbook Emeril Lagasse: Wine Spectator Award Hey, Katrina: WHERE IS EMERIL? Emeril Lagasse: iPod ReciPods Emeril Lagasse: Carnivale du Vin All-Stars Emeril Lagasse Lays Apple iPod Emeril! - The Magazine>? Motley Fool Mulls Over "Frankenfish" (or Emeril's Notches on B&G Foods) Just a Spoonful of Aerosmith Makes the Emeril Go Down? Chef Branding: B&G Foods Exposes Emeril? Hello Kitty, Meet Emeril Lagasse Food Television - complete] [Chefs & Branding - complete] Technorati Tags: superchefblog, Juliette Rossant, super chef, celebrities, chefs, food, restaurants, cooking, branding, cuisine, blogging, food blogging, Emeril Lagasse , Martha Stewart --> back to Super Chef