Deal

1-800-FLOWERS.COM acquires Harry & David Holdings, Inc.

September 2014 Acquisition Ready
01 Scorecard

The deal at a glance

Private-market deal
1-800-FLOWERS.COM acquires Harry & David Holdings, Inc.
Deal value
$142.5 million (cash)
Sector
Gourmet Foods & Gift Baskets
Date
September 2014
VectorShift
Made on VectorShift

1-800-FLOWERS.COM acquired Harry & David Holdings, Inc. for $142.5 million (cash), a transaction completed in September 2014, structured as Acquisition of Harry & David Holdings, Inc.; became a wholly owned subsidiary.

Harry & David Holdings, Inc. operates in Gourmet Foods & Gift Baskets, is based in United States (Medford, Oregon HQ and orchards; Hebron, Ohio distribution; 47 retail stores nationwide). 1-800-FLOWERS.COM acquired Harry & David Holdings, Inc. for $142.5 million in cash, a leading multi-channel specialty retailer and producer of branded premium gift-quality fruit, gourmet food and other gifts under the Harry & David, Wolferman's and Cushman's brands. The deal included Harry & David's brands and websites, its Medford, Oregon headquarters, manufacturing/distribution facilities and orchards, a Hebron, Ohio distribution facility, and 47 retail stores. Harry & David had revenues of nearly $400 million in its most recent fiscal year; the combination created a retailer with more than $1.1 billion in annual sales. The deal closed September 30, 2014.

Combined the leading floral gifting brand with the iconic Harry & David brand to create a multi-occasion, omni-channel gift retailer with more than $1 billion in annual sales, accretive to EPS, EBITDA and free cash flow with operating-cost and revenue synergies.

Operating-cost and revenue-growth synergies; combined database, complementary brands and geographically dispersed manufacturing/distribution; accretive to fiscal 2015 EPS, EBITDA and free cash flow. Operated as a wholly owned subsidiary; anchors the Gourmet Foods & Gift Baskets segment.

We are extremely pleased to be adding the iconic Harry & David name to our growing family of great gifting brands. This combination will increase our total annual revenue to more than $1 billion and add to our EBITDA, EPS and Free Cash Flow.
Jim McCann, CEO, 1-800-FLOWERS.COM
We are thrilled to be joining the 1-800-FLOWERS.COM family. I am confident that by joining forces, we will benefit by gaining access to a robust infrastructure, distribution network, global presence, and enhanced resources.
Craig Johnson, CEO, Harry & David
Advisors not disclosed

No advisory firms have been disclosed for this transaction.

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