Target buys 2 online kitchenware businessesNEW YORK (AP) — Target is adding to its plate in the world of cooking.
NEW YORK (AP) — Target is adding to its plate in the world of cooking.
The Minneapolis-based discounter announced an agreement Thursday to buy Chef's Catalog and assets of Cooking.com in two separate transactions. Financial terms were not disclosed.
Chef's Catalog, founded in 1979, is an online site that sells cookware, bake ware, kitchen tools and other accessories under such brands as Cuisinart, Le Creuset and KitchenAid.
Cooking.com, founded in 1998, offers more than 30,000 products for the kitchen and operates different online stores under such names as Calphalon, Rachael Ray, and Food Network.
Following the closing, which is expected within 30 days, the two businesses will be combined to create a wholly owned subsidiary of Target Inc. Both brands will continue to operate under their current names.
Target, which operates more than 1,700 stores, says that while these transactions will offer growth opportunities, they will not have a meaningful impact to the company's 2013 results.
"We know consumers are increasingly looking online for cooking solutions to make their lives easier — from utensil and cookware, to recipes," said Casey Carl, president of multichannel and senior vice president of enterprise strategy at Target, in a statement. "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 Catalog, will be president of the wholly owned subsidiary and will report to Carl. Chefs Catalog is based in Colorado Springs, Colo.
Tracy Randall, chief executive and co-founder of Cooking.com, based in Marina Del Ray, Calif., will become a consultant to Target.
Shares of Target fell 16 cents to $67.27 midday trading Friday. Shares are near the high end of their 52-week range of $54.68 to $67.56.