1-800-Flowers Buys Harry & David

Food gift retailer sold for $142.5 million

Online florist is purchasing the iconic gift company Harry & David for $142.5 million.

The deal includes all of the Harry & David brands (including Harry & David, Wolferman's and Cushman's); their websites; the company's headquarters, facilities and orchards in Medford, Ore.; a warehouse and distribution facility in Ohio; and the brand's 47 retail oulets in United States.

Harry & David's senior management team will join 1-800-Flowers and the brand will operate as a wholly-owned subsidiary of 1-800-Flowers. The deal is expected to close in October, with funding secured through JP Morgan Chase and Wells Fargo Bank.

Jim McCann, CEO of 1-800-Flowers, said in a statement that the combined revenue of the two companies will surpass $1 billion.

"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. "Importantly, they also share's dedication to exemplary customer service, our focus on high quality and truly original product designs and our omni-channel go-to-market business strategy."

Harry & David got its start nearly 80 years ago selling what would become the brand's flagship Royal Riviera pears. It later added a Fruit-of-the-Month Club, Moose Munch popcorn snacks and Tower of Treats gifts. The company declared bankruptcy in 2011 amid weak sales, but exited the status that same year.

In a statement of his own, Harry & David CEO Craig Johnson characterized the deal as 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."

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