Consumers lamenting their inability to send gourmet pears to potential paramours along with flowers received some good news Tuesday (Sept. 2). 1-800 Flowers has agreed to acquire gift basket makers Harry&David.
1-800 Flowers will purchase the gift basket company with $14.2 million in cash. The current management will stay on and the mega-flower retailer intends to operate the company as a subsidiary.
The acquisition deal follows a 2011 bankruptcy filing from Harry&David, as the recession saw the U.S. consumer demand for luxury gift baskets dip sharply.
In the approximately three years since the filing, business has seen slow but steady increases. Revenue reached nearly $400 million in its most recently reported fiscal year, according to The New York Times.
“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,” said Harry & David CEO Craig Johnson.
The deal is anticipated to push 1-800 Flowers annual revenue north of $1 billion. Financing for the deal will be provided by J.P Morgan and Wells Fargo.