Ferrero to acquire Fannie May Confections

Chocolate confectionery giant Ferrero International has agreed to acquire US-based Fannie May Confections Brands from 1-800-Flowers.com in a deal worth $115 million.

The deal includes the Fannie May and Harry London chocolate brands brands and all related assets and liabilities including, but not limited to, Fannie May’s e-commerce business, 79 retail stores in and around Chicago, Illinois, a manufacturing facility in North Canton, Ohio, and two temperature-controlled warehouse and distribution facilities in Maple Heights, Ohio, and Chicago, Illinois, respectively.

In addition to the sale agreement, the company and Ferrero will enter into a strategic commercial partnership, to be signed on or before closing of the sale, that will provide 1-800-Flowers.com with distribution rights for Fannie May, Harry London and certain Ferrero confectionery products in its e-commerce channels, as well as in gift baskets and towers sold into the club, food, drug and mass channels in the US.

Chris McCann, CEO of 1-800-Flowers.com, 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.”

Giovanni Ferrero, CEO of Ferrero Group, added, “Since our entry into the US in 1969, we have actively expanded our premium product offering organically, and are thrilled to further accelerate growth through the addition of Fannie May.”

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close by 30 May.