Yesterday, Carle Place, N.Y.-based 1-800-FLOWERS.COM, Inc. announced it had signed an agreement to  acquire Harry & David Holdings, Inc.

Harry & David is a leading multi-channel specialty retailer and producer of branded premium fruit and gourmet food gifting products, including such confections as Tower of Treats gifts and Moose Munch caramel and chocolate popcorn snacks.

The $142.5-million cash acquisition includes Harry & David's brands and websites as well as its headquarters, manufacturing and distribution facilities and orchards in Medford, Ore., a warehouse and distribution facility in Hebron, Ohio, and 47 Harry & David retail stores located throughout the country.

Harry & David's current senior management team will remain with the business, which will become a wholly owned subsidiary of 1-800-FLOWERS.COM.

"We are extremely pleased to be adding the iconic Harry & David name to our growing family of great gifting brands,” says Jim McCann, ceo of 1-800-FLOWERS.COM. “Harry & David has steadily grown its top and bottom line for the past several years, with revenues reaching nearly $400 million in its most recent reported fiscal year. This combination will increase our total annual revenue to more than $1 billion and add to our EBITDA, EPS and Free Cash Flow. It also further extends our position as the leading destination for all of our customers' celebratory and gifting occasions and significantly enhances our gift offering in the growing gourmet food and gift baskets space."

Craig Johnson, Harry and David’s ceo, adds that the gourmet gift company is "thrilled to be joining the 1-800-FLOWERS.COM family… I am confident that by joining forces, we will benefit by gaining access to a robust infrastructure, distribution network, global presence, and enhanced resources, which will enable us to continue to cultivate and grow the one-of-a-kind Harry & David brand."

McCann noted that the deal would be accretive to the company's top and bottom line results in the current fiscal year.

"In addition, we believe there are some significant synergies, in terms of both operating costs and revenue growth opportunities, that will further enhance the value of the combined businesses in both the near term and in the years to come," he says.

The acquisition will provide 1-800-FLOWERS.COM, Inc. with a number of complementary and highly leveragable assets, including:

• A large customer database consisting of both consumers and corporate accounts.
• A website with significant and growing customer traffic.
• A unique collection of proprietary gift products and brands that engender strong customer loyalty.
• A strong operational infrastructure consisting of geographically dispersed manufacturing, warehousing and distribution facilities.

"Harry & David also brings with it a highly skilled team of employees that has done an excellent job of burnishing the Harry & David brand while driving top- and bottom-line growth for the past several years,” adds McCann. “Importantly, they also share 1-800-FLOWERS.COM's dedication to exemplary customer service, our focus on high quality and truly original product designs and our omni-channel go-to-market business strategy. Added to our great family of gourmet food gift brands, including Fannie May, Cheryl's, The Popcorn Factory, FruitBouquets, 1-800-Baskets.com and Stockyards.com, Harry & David helps position us as a leading player in the growing, multi-billion dollar gourmet food gifts space," McCann says.

1-800-FLOWERS.COM, Inc. has secured committed funding for the acquisition from JP Morgan Chase and Wells Fargo Bank. The acquisition is expected to close in October 2014, subject to regulatory approval.