NEW YORK (TheStreet) -- Shares of Martha Stewart Living Omnimedia (MSO) were falling 14% to $6 on heavy trading volume on Monday morning following the announcement that Sequential Brands Group (SQBG) will acquire the media and merchandising company.
Sequential brands will pay $353 million in cash and stock to acquire the company with an aggregate consideration value of $6.15 a share.
Following the transaction Martha Stewart Living will become a new vertical in Sequential Brands' platform. Martha Stewart will remain an "integral part of the brand" and will continue to serve as Chief Creative Officer.
Stewart will also become a "significant stockholder" in the company and will be nominated to serve on the board of directors after the deal closes.
The deal is expected to close in the second half of 2015.
About 1.4 million shares of Martha Stewart Living were traded by 10:10 a.m., well above the company's average trading volume of about 322,000 shares a day.
TheStreet Ratings team rates MARTHA STEWART LIVING OMNIMD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MARTHA STEWART LIVING OMNIMD (MSO) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow."