As Seen On TV Acquires eDiets.com For $13 Million
Provider of personalized nutrition, weight loss and fitness programs, eDiets.com now has a new home, or rather, a new owner.
The direct response marketing firm As Seen On TV has just announced the acquisition of eDiets, in what looks like an all-stocks deal. The deal would be valued at $13 million and As Seen On TV will pay all of that sum in stock. eDiets seems to be quite a snag for As Seen On TV; in 2011 the former generated over $22 million in revenue and the extensive marketing and promotion machinery built up over the years means that eDiets will probably make more in 2012.
As Seen On TV released a statement outlining its plans for the acquired company: “To-date customer acquisition has been driven by print media and short-form 30 and 60 second TV spots. The shared plan is to create, develop and utilize a long-form infomercial to more effectively acquire customers and spur growth of eDiets.com, Inc. subscribers.
The As Seen On TV, Inc. team, led by Kevin Harrington, has a vision in creating an infomercial utilizing celebrities and will utilize its expertise in production and media buy planning.
Additional opportunities include tying the eDiets.com, Inc. dietary meal delivery plan to other infomercial fitness products and the ability to upsell complementary fitness and household good products, two solid segments in the As Seen On TV world.”
The good news coming out of the announcement is that eDiets won’t undergo any radical changes to its current setup. This means of course that current employees will likely get to keep their jobs. This is a refreshing outcome given the current climate of acquisitions which are commonly followed by extensive layoffs.