Sequential Brands To Buy Martha Stewart For $353 Mln. - Update

(RTTNews) - Sequential Brands Group Inc (SQBG) on Monday agreed to buy publishing and housewares company Martha Stewart Living Omnimedia Inc (MSO) in a cash and stock deal valued at about $353 million.

Sequential will offer an aggregate of $6.15 per share, payable equally in stock and cash.

The deal, approved by the boards of both companies, is expected to close in the second half of 2015.

Following the announcement, Martha Stewart shares slid 13 percent in morning trade on the New York Stock Exchange.

The deal was quite expected as recent reports gave indications of a transaction in the offing.

As per the terms of the deal, founder Martha Stewart will continue as chief creative officer of the business she founded, and will serve on the combined company's board as well.

The deal includes a 30-day "go-shop" period for Martha Stewart Living.

For Sequential, the deal adds a new vertical to its platform, which is expected to generate nearly $3.75 billion in annual retail sales from a portfolio of brands in the home, fashion and lifestyle categories.

Martha Stewart Living provides lifestyle content and products for consumers, focusing on cooking, home decorating, weddings, holidays and celebration.

Under founder Martha Stewart, the company reached dizzy heights, only to cede dominance to online competition. Stewart also had a setback when she got involved in a stock sale probe and had to serve about 5 months in prison.

In recent years, Martha Stewart Living has cut jobs and pruned unprofitable businesses. Last year, it licensed its magazines to Meredith Corp.

MSO is trading at $6.06, down $0.92 or 13.18%, on the NYSE.

SQGB is trading at $17.01, up $0.01 or 0.09%, on the Nasdaq.