"Harry & David has steadily grown its top and bottom-line for the past several years, with revenues reaching nearly $400 million in its most recently reported fiscal year," Jim McCann, founder and CEO of 1-800-FLOWERS.COM, said.
CLEVELAND, Ohio -- 1-800-FLOWERS.COM Inc., the floral and gift retailer that also owns the Fannie May chocolate factory in North Canton, Harry London Gourmet Chocolates, and Cheryl's Cookies in Westerville, has signed a definitive agreement to acquire Harry & David Holdings Inc., a specialty retailer known for its fruit and gift baskets, for $142.5 million in cash.
The deal, expected to close in October, includes Signature Harry & David brand products, including its flagship Royal Riviera pears, Fruit-of-the-Month Club products, Tower of Treats gifts, Moose Munch caramel-and-chocolate popcorn snacks, Wolferman's specialty English muffins and other breakfast foods, and Cushman's HoneyBells citrus gifts.
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View full size1-800-FLOWERS.COM's CEO Jim McCann said acquiring Harry & David will make it a company with annual sales of more than $1 billion.1-800-FLOWERS.COM is also buying: Harry & David's brands and websites; its headquarters, manufacturing and distribution facilities and orchards in Medford, Oregon; a warehouse and distribution facility in Hebron, Ohio; and 47 Harry & David retail stores, including at Aurora Farms Premium Outlets in Aurora and at Tanger Outlets in Jeffersonville.
"We are extremely pleased to be adding the iconic Harry & David name to our growing family of great gifting brands," said Jim McCann, founder and chief executive of 1-800-FLOWERS.COM in a statement. "Harry & David has steadily grown its top and bottom-line for the past several years, with revenues reaching nearly $400 million in its most recently reported fiscal year."
"This combination will increase our total annual revenue to more than $1 billion," and add to profits, earnings-per-share and cash flow, he said. "It also further extends our position as the leading destination for all of our customers' celebratory and gifting occasions and significantly enhances our gift offering."
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View full size1-800-FLOWERS.COM is also acquiring Cushman's HoneyBells citrus gifts as part of its purchase of Harry & David. Craig Johnson, chief executive of Harry & David, said in the same statement that "We are thrilled to be joining the 1-800-FLOWERS.COM family. This announcement is a clear endorsement of the remarkable work that our talented team has put in over the past several years to rebuild the iconic Harry & David brand."
"1-800-FLOWERS.COM is a phenomenal organization which shares our commitment to providing inspiring and innovative premium-quality products and exceptional service to customers."
McCann said the deal would contribute to 1-800-FLOWERS.COM's sales and profits this year. "We believe there are some significant synergies, in terms of both operating costs and revenue growth opportunities that will further enhance the value of the combined businesses in both the near term and in the years to come," he added.
"Added to our great family of gourmet food gift brands, including Fannie May, Cheryl's, The Popcorn Factory, FruitBouquets, 1-800-Baskets.com and Stockyards.com, Harry & David helps position us as a leading player in the growing, multi-billion-dollar gourmet food gifts space," McCann added.
1-800-FLOWERS.COM, based in Carle Place, N.Y., is scheduled to release its financial results for the fourth quarter and fiscal year 2014 that ended June 29 on Thursday, Sept. 11. Its shares trade on the NASDAQ Global Select Market, under the ticker symbol FLWS.