Martha Stewart Living Omnimedia (MSO) set plans to sell a Martha Stewart Crafts line of products, at last giving customers "a one-stop shop for their crafting needs."
The New York media company said it is entering a relationship with closely held crafts outfit EK Success and its acquirer, private equity house GTCR Golder Rauner, to make Martha Stewart Crafts products. Terms weren't disclosed but include a licensing agreement and an equity stake contingent on performance.
The first Martha Stewart Crafts products will be paper-based craft and scrapbooking merchandise, set to roll out in the fourth quarter of 2006 or the first quarter of 2007.
"Scrapbooking has taken hold across every demographic, and we are thrilled to be partnering with the industry leader, EK Success," said Robin Marino, president of merchandising at Martha Stewart Living Omnimedia. "MSLO has both how-to expertise and deep archives in the craft arena, and we look forward to creating inspired, high-quality products in what is clearly a growth industry."
Martha Stewart Crafts products will be sold in the major craft chains and in independent craft stores, as well as on the Internet at
marthastewart.com, the company said. The Web site will feature Martha Stewart Crafts tools, templates and paper products as well as MSLO's inventive scrapbooking content and ideas to inspire and guide consumers through the creation of their own projects.
"This venture breaks new ground for MSLO, expanding our product offerings and distribution channels," said CEO Susan Lyne. "We look forward to exploring additional opportunities with GTCR in the large and expanding market for craft products of all kinds."
On Thursday, Martha fell 9 cents to $17.78.