MINNEAPOLIS - March 14, 2013
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.
Cooking.com, 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, Calif.
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.