Italian confectionery giant Ferrero International has agreed to acquire US-based Fannie May Confections Brands from 1-800-Flowers.com for $115m in cash.
The deal also includes Fannie May's subsidiaries Fannie May Confections and London Candies.
In addition to the deal, Ferrero and the New York-based gourmet food and floral gifts provider 1-800-Flowers have decided to form a strategic commercial partnership.
The agreement in this regard which is to be signed on or before the close of the acquisition, will give 1-800-Flowers the distribution rights for Harry London, Fannie Mary and select Ferrero confectionery products in the e-commerce sites, gift baskets and towers of the New York company sold across the food, club, mass, and drug channels in the US.
1-800-Flowers.com CEO Chris McCann said: “This transaction will further strengthen our balance sheet while concurrently reducing the working capital requirements in our business model.
“Importantly, the strategic commercial agreement with Ferrero will enable us to continue offering the iconic Fannie May and Harry London chocolate brands across our ecommerce 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 – further enhancing our ability to help our customers deliver smiles.”
Founded in 1929, Fannie May manufactures premium chocolates and confections from an Ohio-based factory. It has distribution centers in Ohio and Illinois, and has a workforce of 750 employees alongside additional seasonal hires.
Subject to regulatory approvals and customary closing conditions, the acquisition is likely to be completed by the end of May this year.
After the completion of the acquisition, Fannie May will operate independently as a Ferrero brand with the backing from its new parent company as required.
Ferrero Group CEO Giovanni Ferrero said: “Fannie May represents a strong strategic and cultural fit for Ferrero and we are happy that Fannie May’s talented people, premium brand and quality products will become part of the Ferrero Group.
“The US is an important growth market for Ferrero and we are excited about the opportunity to support and grow a great American brand as we continue to expand our presence in the US.”
The acquisition also includes ecommerce business of Fannie May along with its 79 retail stores in and around Chicago, an Ohio manufacturing plant, and two temperature-controlled warehouses in Ohio and distribution facilities in Chicago.