1-800 Flowers completes acquisition of Harry & David

Carle Place, N.Y. -- 1-800-Flowers.com announced the closing of its acquisition of Harry & David Holdings, a specialty retailer and producer of branded premium gift-quality fruit, gourmet food products and other gifts.



“This combination will propel our total annual revenues to more than $1.1 billion and offers numerous opportunities to accelerate our top and bottom-line growth going forward,” said Jim McCann, CEO of 1-800-Flowers.com.



The acquisition includes Harry & David’s brands and websites as well as its headquarters, manufacturing and distribution facilities and orchards in Medford, Oregon, a warehouse and distribution facility in Hebron, Ohio, and 48 Harry & David retail stores located throughout the country.



To fund the all-cash deal, the company has entered into a new credit facility, led by JP Morgan Chase Bank, N.A. and Wells Fargo Bank. N.A., consisting of a $142.5 million five-year term loan and a co-terminus $200 million revolving credit line to be used for working capital and other business needs.



McCann noted that the senior management team of Harry & David, led by Craig Johnson, is remaining with the company.