extended its burgeoning consumer products reach Tuesday with the acquisition of Cornerstone Brands, which owns print catalogs and online retailing sites.
Barry Diller's Internet conglomerate bought Cornerstone from private equity investors including Madison Dearborn and J.P. Morgan for $720 million after tax. The company earned $66 million before interest, taxes, depreciation and amortization in 2004 on revenue of $720 million.
Cornerstone, which publishes catalog titles like Ballard Designs, Garnet Hill and Smith & Noble, will be folded into IAC's electronic retailing unit and HSN. HSN Catalog Services will be renamed Cornerstone Brands.
"Catalog shoppers have been the fastest retail shoppers to migrate online and aligning the promotional power of TV and the catalog, together with the convenience and dynamic experience of the Internet, will provide compelling shopping experiences for current and new customers," IAC said in a release.
IAC was recently up 19 cents to $22.69.