1-800-Flowers.com (Nasdaq: FLWS) is buying gift company Harry & David Holdings Inc. for $142.5 million.
Harry & David sells gift baskets, fruits and gourmet gift items under the Harry & David, Wolferman's and Cushman's brands. Some of the company's best known products are its Royal Riviera pears, Fruit-of-the-Month club products, Tower of Treats gifts, Moose Munch caramel and chocolate popcorn snacks, Wolferman's specialty English muffins and Cushman's HoneyBells citrus gifts. The company reorganized through a Chapter 11 bankruptcy process in 2011, and exited from bankruptcy that September. In 2004, New York private equity firm Wasserstein & Co. paid $252.9 million to buy the company from Japanese conglomerate Yamanouchi Parmaceutical Co.
The acquisition gives 1-800-Flowers.com Harry & David's brands, headquarters, manufacturing and distribution facilities, orchards in Medford, Oregon, and retail locations. Harry & David will operate as a subsidiary of 1-800-Flowers.com
1-800-Flowers, headquartered in Westbury, New York, sells flowers, gift baskets, foods, candles, balloons and other products online.
JP Morgan Chase and Wells Fargo Bank have committed funding for the acquisition to 1-800-Flowers.com. Wells Fargo Securities is acting as the buyer's financial adviser, while Centerview Partners LLC and Piper Jaffray & Co. are acting as Harry & David's financial advisers. Cahill Gordon & Reindel LLP is 1-800-Flowers.com's legal counsel. Andy Levin, Bob Profusek, Chip Bensinger, Ed Kennedy, Candy Ridgway, Wendy Davis and Brad Brasser of Jones Day provided legal advice to Harry & David on the deal.
Other recent consumer goods and retail deals include Sequential Brands Group's (Nasdaq: SQBG) deal for Galaxy Brand Holdings from the Carlyle Group (Nasdaq: CG) in August, and HIG Growth Partners' investment in online retailer LuLu's Fashion Lounge, also in August.