1-800-Flowers Buys Harry & David

Food gift retailer sold for $142.5 million

Online florist 1-800-Flowers.com 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 1-800-Flowers.com'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."