Ferrero International, Luxembourg, announced it has agreed to acquire Fannie May Confections from 1-800-Flowers.com, Inc., Carle Place, N.Y., for $115 million. Fannie May has one manufacturing plant, two distribution centers and employs 750.
After the transaction is complete, Ferrero says Fannie May will operate as a standalone entity and brand within the Ferrero Group. Ferrero says it will continue to operate a network of Fannie May retail stores, with plans to grow the network over time.
"Fannie May brings great people and a valuable manufacturing, distribution and retail network to Ferrero’s expanding U.S. presence," explains Paul Chibe, president and CEO of Ferrero North America. "We plan to build on the Fannie May organization to support the growth of the Fannie May and Harry London brands. We are confident there are significant opportunities to enhance Fannie May’s growth, leveraging Ferrero’s capabilities to sell new products through a substantially larger base of channels."
Fannie May’s main distribution channels include its online business, leveraging 1-800-Flowers.com’s e-commerce platform, telephone, home shopping channel and retail stores operated by Fannie May.
As part of the business deal, 1-800-Flowers.com will enter into an agreement that will allow it to continue to sell Fannie May, Harry London and certain Ferrero confectionery products in its e-commerce channels as well as gift baskets sold at clubstores, food, drug and mass merchandising channels in the U.S.
"This transaction will further strengthen our balance sheet while concurrently reducing the working capital requirements in our business model," says Chris McCann, CEO of 1-800-Flowers.com. "Importantly, the strategic commercial agreement with Ferrero will enable us to continue offering the iconic Fannie May and Harry London chocolate brands across our e-commerce and wholesale channels and expand our product offerings to include some of Ferrero’s world-renowned chocolate confectionery brands, including Nutella, Ferrero Rocher and Raffaello."
The deal. subject to customary closing conditions and regulatory approvals, is expected to close by May 30, 2017.