Floral and gift retailer 1-800-Flowers.Com will purchase Harry & David, a multi-channel retailer and producer of gifts, for $142.5 million in cash.
The acquisition will include all Harry & David Inc. brands, such as Harry & David, Wolfermans and Cushmans. There are 47 Harry & David retail stores 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.
"We are extremely pleased to be adding the iconic Harry & David name to our growing family of great gifting brands," said Jim McCann, CEO of 1-800-Flowers. "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... 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 in the growing gourmet good and gift baskets space."
According to McCann, the acquisition would provide 1-800-Flowers with a large customer database, a website with significant and growing customer traffic, a unique collection of gift products, and a strong operational infrastructure.
1-800-Flowers recently initiated steps to modernize and accelerate customer service. For example, the retailer announced it would start accepting bitcoin as digital currency. In addition, 1-800-Flowers is piloting a same-day delivery service in the San Francisco area.
-See this 1-800-FLOWERS press release
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