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Salton buys rights to George Foreman name
NEW YORK, Dec 9 (Reuters) - Salton Inc. (NYSE:SFP - news), a seller of George Foreman Grills, small appliances and personal care products, said on Thursday it would buy the right to use the name ''George Foreman'' to market its cooking appliances.
George Foreman Grills are among Salton's best-selling products, and Salton also gains the right to develop and market other cooking appliances using Foreman's name, the company said.
Salton will pay beefy former heavyweight boxing champion and hamburger aficionado George Foreman and his partners $113,750,000 in cash in five annual installments of $22,750,000. They also will get Salton common stock valued at $23,750,000 at the closing, which is expected to occur during the first quarter of 2000, Salton said.
Foreman, who was a notoriously hard puncher and 1968 Olympic Gold winner, defeated Joe Frazier in 1973 to become champion. He lost the belt in Zaire in 1974 to Muhammad Ali in the ''Rumble in the Jungle.'' He resurrected his boxing career in 1987 and defeated Michael Moorer in 1994 to regain the heavyweight title.
Since 1977, Foreman has been a Baptist preacher.
Salton said the transaction will significantly add to its earnings per share. George Foreman and his partners were previously entitled to 60 percent of the profits from the sale of ''George Foreman'' products. On or after July 1999 sales of those products will contribute to Salton's earnings without any royalty payments.
Salton said the agreement gives it the right to use in perpetuity and worldwide the name ''George Foreman,'' including pictures and likenesses on cooking appliances.
A George Foreman Outdoor Grill will be introduced this spring, Salton said.
The deal is subject to several conditions, including the registration of the shares for public sale, the company said.
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