1-800-FLOWERS.COM acquires Fannie May Confections Brands, Inc. (Fannie May, Harry London, Fanny Farmer)

1-800-FLOWERS.COM acquired Fannie May Confections Brands, Inc. (Fannie May, Harry London, Fanny Farmer) for ~$85 million (cash), a transaction completed in May 2006, structured as Stock purchase; acquisition of all outstanding capital stock of Fannie May Confections Brands, Inc..

Fannie May Confections Brands, Inc. (Fannie May, Harry London, Fanny Farmer) operates in Gourmet Foods & Gift Baskets, is based in United States (manufacturing in North Canton, Ohio; retail in Chicago area). 1-800-FLOWERS.COM acquired Fannie May Confections Brands, Inc., a multi-channel retailer and manufacturer of chocolate and other confections under the Fannie May, Harry London and Fanny Farmer brands, for approximately $85 million in cash. The acquisition included a 200,000-square-foot candy manufacturing facility in North Canton, Ohio and 52 Fannie May retail stores in the Chicago area. Fannie May generated revenues of approximately $75 million in its fiscal year ended April 30, 2006. The deal closed on or about May 1, 2006, financed with an $85.0 million term loan under a new $135 million credit facility plus cash on hand.

Accelerated growth in the Food, Wine and Gift Basket business (increasing annual category revenue to more than $200 million) and enhanced candy-category gross margins through manufacturing and retail capabilities.

Enhanced candy-category gross profit margins through manufacturing and retail capabilities; leverage of 1-800-FLOWERS.COM's 15-million-customer base, online/direct marketing and BloomNet florist network; expected accretive to fiscal 2007 EPS. Operated as Fannie May Confections Brands within the Gourmet Food & Gift Baskets segment (divested to Ferrero in 2017).

The Fannie May, Harry London and Fanny Farmer names represent premium candy brands, perfect as gifts for any occasion and offer a significant opportunity for growth, particularly through the leveraging of our assets and capabilities in the online and direct marketing space.Jim McCann, CEO, 1-800-FLOWERS.COM

Now we have the opportunity to accelerate expansion of these great brands nationally with the significant resources, expertise and commitment of a strong strategic partner.David Taiclet, CEO, Fannie May Confections

Advisory firms were not disclosed for this transaction.

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