As Seen on TV acquires eDiets.com
August 24, 2012 04:45 PM
As Seen On TV Inc., a direct response marketing company and owner of the web site AsSeenOnTV.com, signed a letter of intent to acquire eDiets.com Inc., a web-only retailer of at-home meals and diet, fitness and health plans, earlier this month. The deal was announced Aug. 10 and since then more details have been made available in updated company filings with the U.S. Securities and Exchange Commission. The all-stock deal is valued at about $13 million in As Seen on TV stock. The deal is expected to close in 90-120 days.
The combined companies plan to develop a long-form infomercial to more effectively acquire customers and spur growth of eDiets.com subscribers, says As Seen on TV. Additional plans include tying the eDiets.com dietary meal delivery plan to other infomercial fitness products and to upsell complementary fitness and household good products, two areas As Seen On TV considers its strengths.
EDiets.com will be structured as a wholly owned subsidiary of As Seen On TV and will continue to be operated by its current management team, including CEO Tom Connerty, according to As Seen on TV
For the quarter ended June 30, eDiets, No. 420 in the 2012 Internet Retailer Top 500 reported:
- Sales of $5.6 million, flat compared with $5.6 million in the second quarter of 2011.
- Net loss of $144,000, compared with a net loss of $851,000 in Q2 2011.
For the first six months, eDiets reported:
- Sales were $12.6 million, up by 3.3% from $12.2 million for the same period last year.
- Net loss was $1.21 million, compared with a net loss of $1.23 million in the first six months of 2011.