I saw this posted on another message board. Thought you all might be interested.(It was posted last week, and I am just now reading it, and passing it along. I don't know the source of the article) Has anyone else heard about this? Linda C FOR IMMEDIATE RELEASE
MARTHA STEWART LIVING OMNIMEDIA, INC. TEAMS WITH EK SUCCESS, LTD & GTCR GOLDER RAUNER, LLC TO CREATE MARTHA STEWART CRAFTS?
Leaders in Collecting, Scrapbooking and Crafts to Unveil New Products End of 2006 - Early 2007
NEW YORK - January 5, 2006 -Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) announced today that it is entering into a relationship with EK Success, LTD and GTCR Golder Rauner, LLC to manufacture, market and sell Martha Stewart Crafts? products. The Martha Stewart Crafts line will include a wide range of craft products to provide consumers with a one-stop shop for their crafting needs. The first Martha Stewart Crafts products introduced will be paper-based craft and scrapbooking merchandise which are expected to roll out in the fourth quarter of
2006 or the first quarter of 2007. Terms of the deal include a licensing agreement, as well as an equity stake in the venture, the value of which is contingent on certain performance thresholds.Martha Stewart Crafts products will be sold in the major craft chains and in numerous independent craft stores throughout the country, as well as on the internet at
EK Success is a creative consumer products company with the leading market position in the fast-growing $3.0 billion scrapbooking segment of the U.S. craft industry. EK Success markets products such as stickers, multi-dimensional embellishments, tools, albums, punches and pens for use in scrapbooking and related paper crafts, such as card making and invitation creation. The company has a demonstrated history of consistent, successful product innovation, having won over 40 design and reader's choice awards since 2002. In December 2005, EK Success announced that it had entered into a definitive agreement to be acquired by GTCR Golder Rauner LLC, one of the nation's leading private equity firms.
"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."
According to Chris Skinner, CEO of EK Success, "Martha Stewart and her team of experts have had enormous influence on collecting and crafts in America. They are the ultimate source of creative inspiration and practical information on how to create handmade, homemade crafts. It is a pleasure to pair our marketing, education, product development and retail distribution expertise with such a trusted brand. We look forward to working with them in this partnership."
GTCR Principal Vince Hemmer added, "Martha Stewart Crafts will be a powerful name in the crafts industry. The collaboration with MSLO gives EK the opportunity to expand its leadership position in the paper-based crafts industry. The combination of EK's and MSLO's expertise and knowledge will further strengthen EK's product offerings and market position."
Stated MSLO Founder Martha Stewart: "Scrapbooking and crafts have always been hobbies of mine - and ones that we have been teaching people how to do through our magazines and television shows for years. Whether it's to document a special event, such as a wedding or a child's first birthday, or to preserve a family's prized photographs, scrapbooking appeals to everyone. It is a pleasure to partner with EK Success, a company that shares our commitment to developing innovative and creative products."
Susan Lyne, MSLO's President and CEO, stated: "This venture breaks new ground for MSLO, expanding our product offerings and distribution channels. And our relationship with GTCR is potentially broader than paper-based crafts. We look forward to exploring additional opportunities with GTCR in the large and expanding market for craft products of all kinds."