ADDING MULTIMEDIA 1-800-FLOWERS.COM(R) Signs Definitive Agreement to Acquire Fannie May Confections Brands, Inc.CARLE PLACE, N.Y. -- 1-800-FLOWERS.COM (1) (Computer Output Microfilm) Creating microfilm or microfiche from the computer. A COM machine receives print-image output from the computer either online or via tape or disk and creates a film image of each page. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : FLWS FLWS Force Level Warfare Systems ): --1-800-FLOWERS.COM(R) Signs Definitive Agreement to Acquire Fannie May
Fanny Farmer was started in Rochester, New York by Frank O'Connor in 1919. The company was named in honor of culinary expert Fannie Farmer, who had died four years earlier. (R) --Acquisition Expected to Accelerate the Company's Growth in the Food, Wine and Gift Basket A gift basket, or fruit basket is typically a gift that is delivered to the recipient at their home or workplace. There are different varieties of gift baskets, some which have fruit only, some with dry/canned goods only (such as tea, crackers and jam) although the standard Business, Increasing Annual Revenue in the Category to More Than $200 Million 1-800-FLOWERS.COM (NASDAQ: FLWS), a leading multi-channel retailer of thoughtful gifts for all occasions, today announced the signing of a definitive agreement to acquire Fannie May Confections Brands, Inc., a multi-channel retailer and manufacturer of chocolate and other confections under the well-known Fannie May, Harry London and Fanny Farmer brands. The acquisition, for approximately $85 million in cash, includes a modern 200,000-square-foot candy manufacturing facility in North Canton, Ohio North Canton is a city in Stark County in the U.S. state of Ohio. The population was 16,369 at the 2000 census. History
Jim McCann, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of 1-800-FLOWERS.COM, said, "During the past several years, as we have aggressively expanded our Food, Wine and Gift Basket business, we have seen chocolate and other confection con·fec·tion n. A sweetened medicinal compound. Also called electuary. items become an increasingly important part of our gift offering. 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. In addition to a collection of iconic i·con·ic adj. 1. Of, relating to, or having the character of an icon. 2. Having a conventional formulaic style. Used of certain memorial statues and busts. brands that enjoy tremendous customer affinity, we expect this acquisition to enhance our candy category gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. through extensive manufacturing and retail capabilities. It also brings an experienced and focused management team that can help us achieve the leadership position we have targeted in the Food, Wine and Gift Basket category." The Company said the acquisition would be financed through a combination of cash on hand and bank lines of credit. McCann noted that the Company anticipated that the acquisition will be accretive to earnings in fiscal 2007, which begins in July, 2006. "In addition, similar to the benefits we achieved in bakery gifts through our acquisition last year of Cheryl&Co., we expect this acquisition to enable us to enhance our profitability through improved gross profit margins and synergistic benefits," said McCann. David Taiclet, CEO of Fannie May Confections, said "In the past two years, our team successfully revitalized Fannie May and Harry London, building a thriving confectionery business. It was especially heartwarming heart·warm·ing or heart-warm·ing adj. 1. Causing gladness and pleasure. 2. Eliciting sympathy and tender feelings: a heartwarming tale. Adj. 1. to experience how beloved Fannie May is in Chicago and across the Midwest. 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. With more than 15 million customers, 1-800-FLOWERS.COM's unique multi-channel fulfillment systems and extensive direct-to-consumer online marketing expertise will help us continue that growth. We are thrilled to have this opportunity." Fannie May Confections will continue to be based in Chicago and senior management will remain with the business, which will become a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of 1-800-FLOWERS.COM. Dave Taiclet will continue as CEO, Terry Mitchell as President, Matthew Anderson as CFO See Chief Financial Officer. , and Alan Petrik as COO. 1-800FLOWERS.COM plans to support the Fannie May branded retail locations centered on the Chicago market. Under the new ownership, Fannie May Confections Brands intends to continue using the same recipes, ingredients and suppliers that have made its chocolates a family tradition for generations. The Harry London brand was purchased in 2003 and the Fannie May and Fanny Farmer brands in 2004 by Alpine Confections, Inc., (subsequently renamed Fannie May Confections Brands, Inc. in conjunction with the planned acquisition by 1-800-FLOWERS.COM, Inc.). Alpine's other businesses - Kencraft, Maxfield's and Dynamic Chocolates - are not part of the planned acquisition and will continue to be operated under separate ownership led by Taz Murray. Alpine Confections, Inc. was named the Candy Industry 2005 Manufacturer of the Year by Candy Industry Magazine in recognition of its growth and achievements in the marketplace. About 1-800-FLOWERS.COM(R) For more than 30 years, 1-800-FLOWERS.COM Inc. - "Your Florist of Choice(sm)" - has been providing customers around the world with the freshest flowers and finest selection of plants, gift baskets, gourmet foods and confections, and plush stuffed animals perfect for every occasion. 1-800-FLOWERS.COM(R) offers the best of both worlds: exquisite, florist-designed arrangements individually created by some of the nation's top floral artists and hand-delivered the same day, and spectacular flowers shipped from our growers to your door fresh. Customers can shop 1-800-FLOWERS.COM 24 hours a day, 7 days a week via the phone or Internet(1-800-356-9377 or www.1800flowers.com) or by visiting a Company-operated or franchised store. Sales and Service Specialists are available 24/7, and fast and reliable delivery is offered same day, any day. As always, 100 percent satisfaction and freshness is guaranteed. The 1-800-FLOWERS.COM collection of brands also includes home decor and garden merchandise from Plow & Hearth(R) (1-800-627-1712 or www.plowandhearth.com); premium popcorn and specialty treats from The Popcorn Factory(R) (1-800-541-2676 or www.thepopcornfactory.com); exceptional cookies and baked gifts from Cheryl&Co.(R) (1-800-443-8124 or wwwcherylandco.com); gourmet foods from GreatFood.com(R) (www.greatfood.com); children's gifts from HearthSong(R) (www.hearthsong.com) and Magic Cabin(R) (www.magiccabin.com) and wine gifts from the WineTasting wine·tast·ing n. A gathering of people to taste and compare a number of wines. Network(R) (www.ambrosiawine.com and www.winetasting.com). 1-800-FLOWERS.COM, Inc. stock is traded on the NASDAQ market under ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors FLWS. Special Note Regarding Forward-Looking Statements: A number of statements contained in this press release, other than statements of historical fact, are forward-looking within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. These risks and uncertainties include, but are not limited to: the risk that the conditions to the acquisition will not be satisfied and, therefore, the acquisition will not close; the Company's ability to successfully integrate its acquired companies, including Fannie May Confections Brands, Inc.; its ability to achieve forecasted revenue growth, enhanced profitability and other synergistic benefits; its ability to maintain and enhance its online shopping web sites to attract customers; its ability to successfully introduce new products and product categories; its ability to provide timely fulfillment of customer orders; its ability to cost effectively acquire and retain customers; its ability to compete against existing and new competitors; its ability to cost efficiently manage inventories; its ability to leverage its operating infrastructure; and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company's products. For a more detailed description of these and other risk factors, please refer to the Company's SEC filings including the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . The Company expressly disclaims any intent or obligation to update any of the forward looking statements made in this release or in any of its SEC filings except as may be otherwise stated by the Company. |
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