(Catalog Age) In the strongest sign yet that the M&A market is roaring back to life, IAC/Interactive Corp. is buying multititle mailer Cornerstone Brands. The transaction value is $720 million net of expected tax benefits. IAC is perhaps best known as the parent company of home-shopping TV network HSN. The privately held Cornerstone Brands, whose titles include Ballard Designs, Frontgate, Garnet Hill, Smith & Noble, The Territory Ahead, and TravelSmith, had EBIDTA of $66 million for the year ended Jan. 29.
HSN Catalog Services, which consists of the Improvements and Alsto’s home products catalogs, will become part of Cornerstone Brands. Although several Cornerstone titles, such as Frontgate and Ballard Designs, sell home improvement and decor products, their price points are somewhat higher than those of the HSN titles. The deal will provide back-end synergies, however, as well as “significant cross-promotional benefits,” according to IAC.
JPMorgan Securities and GLC Securities Corp., an affiliate of Gruppo, Levey & Co., acted as financial advisors for Cornerstone Brands. Lehman Brothers advised IAC in the deal.
Network
