Plano, TX, United States (AHN) – Domestic diva Martha Stewart has inked a deal with JC Penney.
On Wednesday, the Plano, Texas-based department store announced it is acquiring a 16.6 percent stake in Martha Stewart Living Omnimedia Inc.
JC Penney is buying 11 million newly issued shares of stock at $3.50 a share, for $38.5 million.
Under the terms of a 10-year commercial agreement, JC Penney will introduce distinct Martha Stewart retail stores inside the majority of its department stores beginning in February 2013.
Featured in these new Martha Stewart stores will be a variety of affordable home and lifestyle merchandise designed and curated by the the domestic diva herself.
The stores will be staffed by trained employees who will give consumers direct access to the products and will also provide educational tips. JC Penney will market and source the products.
The two companies will also work together to develop an e-commerce site, also expected to launch in 2013. The online site will offer Martha Stewart expertise and enable consumers to purchase a wide range of home and lifestyle products.
Shares of Martha Stewart soared 25 percent following the news and were last trading at $3.98 a share. Shares of JC Penney were little changed at $33.21.