Target Corp. (NYSE: TGT) is buying Chefs Catalog and Cooking.com, which owns and operates online stores for the Food Network, Rachael Ray and Calphalon, for an undisclosed amount.
Chefs Catalog, headquartered in Colorado Springs, Colo., is a direct-to-consumer cookware retailer that sells bake ware, cutlery, kitchen tools and cooking utensils. The company is owned by San Francisco private equity firm JH Partners.
Cooking.com, based in Marina Del Rey, Calif., is an e-commerce company that operates online stores.
The two transactions are separate and are both expected to close within 30 days. After the deals close, the two companies will be combined into a Target subsidiary, but will retain their brand names.
Faegre Baker Daniels LLP is Minneapolis-based Target’s legal adviser. Janney Montgomery Scott LLC is Chefs Catalog’s financial adviser, while Perkins Coie LLP acted as legal adviser. Headwaters MB is Cooking.com’s financial adviser, and DLA Piper is providing legal advice.
The deal was announced on the heels of Target electing two new directors to its board: Douglas Baker, Jr., chairman and CEO of Ecolab Inc. (NYSE: ECL), and Henrique De Castro, COO of Yahoo! Inc. (Nasdaq: YHOO).
This is also the first transaction for Target since the retail chain was on the sell-side of the negotiation table in October when it opted to sell its consumer credit card business to Toronto-based TD Bank Group (NYSE: TD) for $5.9 billion.
For more on retail M&A, see "Retail M&A: Time-Tested Brands Sell."