Harry and David has agreed to be acquired by 1-800 Flowers.com for $142.5 million in cash.
By joining forces with 1-800-Flowers.com,Harry & David will become part of a larger corporation with infrastructure, distribution network and a global presence.
The acquisition includes Harry & David’s brands and websites as well as its headquarters, manufacturing and distribution facilities and orchards, a warehouse and distribution facility in Hebron, Ohio, and 47 Harry & David retail stores located throughout the country. Harry & David’s current senior management team will remain with the business, which will become a wholly owned subsidiary of 1-800-Flowers.com.
The deal is expected to close in October.
Harry & David CEO Craig Johnson, who took the helm of the company when it emerged from Chapter 11 court protection three years ago, referred questions to public relations firm Sard Verbinnen & Co. The New York firm served as Harry & David's buffer when Wasserstein & Co. took the company into bankruptcy.
A Sard Verbinnen representative said it's too early to discuss the implications of integration on the company's present leadership team.
"We are extremely pleased to be adding the iconic Harry & David name to our growing family of great gifting brands. Harry & David has steadily grown its top and bottom-line for the past several years, with revenues reaching nearly $400 million in its most recent reported fiscal year," Jim McCann, CEO of 1-800-Flowers, said in a statement.
McCann said the combined company will produce annual revenue of more than $1 billion.
He touted the acquisition as boosting his company's position as the leading destination for customers' celebratory and gifting occasions and significantly enhances its offerings in the growing gourmet food and gift baskets space.
"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," McCann said in a statement.
In a statement issued through Business Wire this morning, Johnson said the acquisition validates Harry & David's post-bankruptcy efforts.
"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," Johnson said. "I am confident that by joining forces, we will benefit by gaining access to a robust infrastructure, distribution network, global presence, and enhanced resources, which will enable us to continue to cultivate and grow the one-of-a-kind Harry & David brand."
Carle Place, N.Y.-based 1-800-Flowers said there was a lot to like about incorporating Harry & David into its empire, including a large customer database consisting of both consumers and corporate accounts; a website with significant and growing customer traffic; a unique collection of proprietary gift products and brands that engender strong customer loyalty; and a strong operational infrastructure consisting of geographically dispersed manufacturing, warehousing and distribution facilities.
"Harry & David also brings with it a highly skilled team of employees that has done an excellent job of burnishing the Harry & David brand while driving top and bottom-line growth for the past several years," McCann said.
Harry & David will join 1-800's Fannie May, Cheryl's, Popcorn Factory, FruitBouquets, 1-800-Baskets.com and Stockyard.com line-up.