Tuesday, August 6, 2019
1-800-Flowers.com (FLWS)
The Latest Acquisition Is The Berries
1-800 Flowers.com Inc is a United-States-based provider of gourmet food & gift baskets, consumer floral, and BloomNet wire service. Gourmet food & gift baskets and consumer floral jointly account for the majority of the company’s total revenue. The company provides a broad range of merchandise, including fresh flowers, premium, fruits, popcorn, specialty treats, cookies and baked gifts, premium chocolates, confectionery, gift baskets, premium English muffins, steaks and chops, and others.
Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to full report for price target, fundamental analysis and rating.
- A sweet deal. The company announced that it plans to purchase Shari’s Berries out of the FTD bankruptcy for $20.5 million. The deal is expected to close by the end of August 2019. We view the tuck-in acquisition favorably given the strong brand, its leadership position in the category, and as a complement to the company’s gourmet product offerings.
- The price is right. Shari’s Berries is estimated to generate roughly $100 million in revenue, but has been largely unprofitable. In our view, the purchase price of $20.5 million is attractive given that the company will….
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