By Business Wire, March 14, 2013, 12:00:00 PM EDT
CHEFS Catalog and Cooking.com businesses will be combined into
new, wholly owned subsidiary
Target Corp. (NYSE:TGT) today announced agreements to acquire CHEFS
Catalog and assets of Cooking.com in two separate transactions. The
e-commerce acquisitions are aimed at expanding Target's presence in the
growing cooking and kitchenware market.
Following the closings, the two businesses will be combined to create a
new, wholly owned subsidiary of Target. Both brands will continue to
operate under their current names. Target believes these transactions
present a strategic growth opportunity; however, there will not be any
meaningful financial impact to Target's 2013 results.
"We are excited to bring CHEFS and Cooking.com into the Target family,"
said Casey Carl, president of Multichannel and senior vice president,
Enterprise Strategy, Target. "We know consumers are increasingly looking
online for cooking solutions to make their lives easier - from utensils
and cookware, to recipes. These strategic transactions provide us a
great way to address this growing opportunity and will offer expanded
online options for our guests."
Tim Littleton, president and chief executive of CHEFS, will be president
of the wholly owned subsidiary and will report to Mr. Carl. Tracy
Randall, chief executive and co-founder of Cooking.com, will become a
consultant to Target.
"We're delighted to be a part of the Target organization," said Mr.
Littleton. "CHEFS has grown and thrived online by offering a well-edited
selection of leading kitchen tools, gadgets and accessories. Combined
with Cooking.com and their strong Powered By partnerships, their vast
array of recipes and user-driven product ratings and reviews, we believe
we're well-positioned to provide an even richer online experience for
our collective customers."
Both transactions are expected to close within 30 days. Financial terms
are not being disclosed.
Faegre Baker Daniels LLP is acting as legal advisor
to Target. Janney Montgomery Scott LLC is acting as financial advisor
and Perkins Coie LLP as legal advisor to Pikes Peak Direct Marketing
Inc., d/b/a CHEFS Catalog. Headwaters MB is acting as financial advisor
and DLA Piper as legal counsel to Cooking.com.
About CHEFS Catalog
CHEFS Catalog is a leading
direct-to-consumer specialty retailer of top rated cookware, bake ware,
cutlery, kitchen tools and cooking utensils aimed at inspiring home
chefs to create delicious and new recipes. Founded in 1979 and based in
Colorado Springs, Colo., CHEFS operates www.chefscatalog.com,
and sells leading brands, including All-Clad, Cuisinart, Le Creuset,
KitchenAid, Scanpan, Wusthof and more. CHEFS is a portfolio company of
JH Partners, a San Francisco based consumer-focused private equity firm.
a leading culinary e-commerce company, builds innovative, entertaining
shopping experiences with trusted brands. Through its Powered By
Cooking.com network, Cooking.com operates uniquely branded stores,
including the Food Network Store, Calphalon Store, and Rachael Ray
Store. Cooking.com offers over 30,000 products for the kitchen as well
as recipes, cookbooks and a growing library of member-submitted cooking
content. The company was founded in 1998 and is based in Marina Del Rey,
Minneapolis-based Target Corporation (NYSE:
TGT) serves guests at 1,787 stores - 1,784 in the United States and
three in Canada - and at Target.com. Since 1946, Target has given 5
percent of its profit through community grants and programs; today, that
giving equals more than $4 million a week. For more information about
Target's commitment to corporate responsibility, visit Target.com/corporateresponsibility.
Source: Target Corp.