Gifting retailer unloads product line, but gains new business partner

1-800-Flowers.com’s latest business move puts the company in a strategic position to more cost-effectively expand its assortment.



The gifting retailer said Wednesday that Ferrero International S.A will acquire the company’s Fannie May Confections Brands, including its subsidiaries Fannie May Confections and Harry London Candies.



The deal, which is valued at $115.0 million, is expected to close by May 30. At that time, Ferrero will acquire all the outstanding equity of Fannie May Confections Brands, including the Fannie May and Harry London chocolate brands and all related assets and liabilities including, but not limited to, Fannie May’s e-commerce business, 79 retail stores located in and around Chicago, Illinois, a manufacturing facility in North Canton, Ohio, and two temperature-controlled warehouse and distribution facilities, located in Maple Heights, Ohio, and Chicago, respectively.



In addition to the sale, Ferrero will become a strategic commercial partner with 1-800-Flowers.com, giving the retailer distribution rights for Fannie May, Harry London and certain Ferrero confectionery products in its e-commerce channels, as well as in gift baskets and towers sold within the club, food, drug and mass channels in the U.S. It will also expand 1-800-Flower.com’s assortment.



“We are very excited to be working with Ferrero International, one of the world’s largest and most respected confectionery companies,” said company CEO Chris McCann. “This transaction will further strengthen our balance sheet while concurrently reducing the working capital requirements in our business model.”