Liberty Media Corp. announced it will purchase e-retailer and cataloger Celebrate Express for $31 million in cash. The deal is expected to close in the third quarter and is subject to stockholder approval.
Celebrate Express, No. 163 in the Internet Retailer Top 500 Guide, sells family-oriented card and party products under the brands Birthday Express, 1st Wishes and Costume Express. Liberty says it will combine Celebrate with its BuySeasons Inc. brand, which operates BuyCostumes.com, a costume and party accessory e-retailer. Liberty Media, No. 11 in the Internet Retailer Top 500 Guide, owns QVC.com and Provide Commerce, which runs ProFlowers.com. Provide purchased the assets of troubled retailer RedEnvelope last month.
"The Celebrate Express acquisition represents another step in our stated strategy to acquire niche e-commerce businesses whose value we can enhance," says Michael Zeisser, senior vice president of Liberty Media.
In April, Celebrate announced it had hired Cowen and Company LLC to help it evaluate a merger proposition from unidentified sources.
The purchase, if approved, would put Liberty among the top 10 online retailers in terms of sales, ahead of Newegg, according to the Internet Retailer Top 500 Guide. Arch Ventures, Thesis Capital and Spencer Management own or control 40% of outstanding stock of Celebrate. All three have approved the transaction.
Back...
