1-800-Flowers Acquires Harry & David

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Online floral retailer 1-800-Flowers announced it has acquired specialty gift retailer Harry & David Holdings Inc. for $142.5 million, according to a press release.

The acquisition includes Harry & David’s brands and websites as well as its headquarters, manufacturing and distribution facilities, its orchards in Oregon, a warehouse and distribution facility in Ohio and 47 of Harry & David’s retailer stores located though out the country.

“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,” said Jim McCann, CEO of 1-800-Flowers. “Harry & David helps position us as a leading player in the growing, multi-billion dollar gourmet food gifts space where we see opportunities for top and bottom line growth and significantly enhanced shareholder value.”

Harry & David’s current senior management team will remain with the business.  The acquisition includes some leveragable assets including: A large customer database consisting of both consumers and corporate accounts; A website with significant growing customer traffic; A collection of proprietary gift products and brands that engender strong customer loyalty; A strong operational infrastructure consisting of geographically dispersed manufacturing, warehousing and distribution facilities.