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Strategies & Market Trends : Speculating in Takeover Targets
CTG 7.090-1.3%Jan 27 4:00 PM EST

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To: richardred who wrote (2762)9/3/2014 10:08:18 AM
From: richardred   of 6544
 
1-800-Flowers to Buy Harry & David
By MICHAEL J. DE LA MERCED September 2, 2014 7:44 amSeptember 2, 2014 8:04 am
Already one of the biggest providers of flower deliveries, 1-800-Flowers.com now wants to add Royal Riviera pears and Moose Munch snacks to its offerings.

The flower delivery company agreed on Tuesday to buy Harry & David, the purveyor of gift baskets, for $142.5 million in cash.

Under the terms of the deal, 1-800-Flowers would continue to run Harry & David as a subsidiary, with the current management staying on.

The deal comes more than three years after Harry & David filed for bankruptcy, a response to recession-related shopping woes. Since then, the retailer has increased both sales and earnings, with revenue reaching nearly $400 million in its most recently reported fiscal year, the companies said in a statement.

“This announcement is a clear endorsement of the remarkable work that our talented company has put in over the past several years to rebuild the iconic Harry & David brand,” Craig Johnson, Harry & David’s chief executive, said in a statement.

Adding Harry & David will push 1-800-Flowers’ annual revenue to more than $1 billion, while also leading to potential cost savings at the two companies.

Financing for the deal will be provided by JPMorgan Chase and Wells Fargo.

1-800-Flowers relied on advice from Wells Fargo and the law firm Cahill Gordon & Reindel. Harry & David used Centerview Partners, Piper Jaffray and the law firm Jones Day as advisers.

dealbook.nytimes.com
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