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Business briefs Real Estate News Pleasant weather, stable interest rates spurred summer home sales People In Business Transportation Agriculture 1-800-Flowers.com buying Harry & David for $142.5 million Earlier than normal pear harvest coming up short of expectations Weisinger's Winery has earliest crush on record Amy's Kitchen begins expansion in White City Opinion Latest Dana Milbank: Proving trickle-down wrong Letters to the Editor, Sept. 7 Harry & David: the next chapter George Will: In a NATO state of mind Charles Krauthammer: Ukraine abandoned Editorials Harry & David: the next chapter An unresolved conflict; A judge declines to say if county laws trump city laws Cheers and jeers Our View: Make property owners pay for cleanup Committed to community Letters to the Editor Letters to the Editor, Sept. 7 Letters to the Editor, Sept. 5 Letters to the Editor, Sept. 4 Letters to the Editor, Sept. 3 Letters to the Editor, Sept. 1 Guest Opinions Hazardous fuel treatments vital to protection from severe wildfires Wilderness for Kalmiopsis has served us well The summer of my discontent: An open letter to Bill Rauch The power of local philanthropy Lifestyle Latest stories Community blog: We Need to Talk Oregon's Top 5 wilderness areas Origin Story: 3 a.m. New Arrivals Puget Sound's south end offers solitude Food Community blog: 'Crispy Treats' a cut above rice-cereal originals The peace potential of cobblers and crisps Lunchbox recipes Community blog: Try this sweet treat for back-to-school snacking Put your kids through the school of good eats Home and Garden Trees aren't always the best companions for plants Hot tips for a cool (shade) garden An August checklist for your garden Green Scene: Diagnosing common tomato troubles Lawn talk Health Community blog: We Need to Talk Down-size is the right size Oregon Health Policy Board to meet in Medford Community blog: Health is More than Meets the Eye 'Super-Agers' are coming fast Hiking Faith Religion briefs Religion briefs Community Blog: Is Peace Possible in the Middle East - Part three of four Milestones and Achievements New Arrivals Engagement Wedding: Gibson-Hodnefield New Arrivals Engagements Columnist for a Day Healthy Aging Tempo Latest stories Live Music in Local Clubs Keith Greeninger and Matt Hill at the Rogue Theatre Jennifer Nettles plays Britt Rob Zombie plays Lithia Amphitheater Rodney Carrington at Britt Theater 'Freud's Last Session" at Ashland Contemporary Theatre OSF presents 'The Alchemy of Gender' Randall Theatre extends 'Godspell' 'Pump Boys & Dinettes' opens at Camelot Theatre Music Live Music in Local Clubs Keith Greeninger and Matt Hill at the Rogue Theatre Jennifer Nettles plays Britt Rob Zombie plays Lithia Amphitheater Britt Festivals adds to indoor fall concert lineup Community Events Ashland's First Friday Art Walk showcases new exhiits by regional artists 5 Things to Do This Weekend From business professor to artist Shady Cove Tie Days Swap Meet 'Prints From the Plateau' at the Rogue Gallery Dining Ami Sushi serves up Asian dishes Wild River Brewing & Pizza Co. NW Raw Kelly's Crepes Tempo Videos Classifieds Jobs Autos Real Estate FEATURED » Obituaries TV Listings Movie Listings Oregon Outdoors Oregon Healthy Living Magazines & Special Sections NEWS NOW Expect delays on I-5 near exit 43 ... OR-7's pups are true wolves ... A pair of recent arsons in northeast Medford have the attention of police ... Expect delays on I-5 near exit 43 ... OR-7's pups are true wolves ... A pair of recent arsons in northeast Medford have the attention of police ... ACQUISITION 1-800-Flowers.com strikes deal for Harry & David Harry & David Holdings sells for far less than the $252.9 million Wasserstein & Co. paid for the purveyor of Royal Riviera pears and Moose Munch in 2004. By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Sep. 2, 2014 @ 5:45 pm Updated Sep 3, 2014 at 12:42 AM By Greg Stiles Mail Tribune Posted Sep. 2, 2014 @ 5:45 pm Updated Sep 3, 2014 at 12:42 AM Here's the $142.5 million deal --> So what is 1-800-Flowers.com getting for the $142.5 million it's paying for Harry & David Holdings? Medford company Harry & David has been controlled primarily by Wasserstein &... » Read more X Here's the $142.5 million deal So what is 1-800-Flowers.com getting for the $142.5 million it's paying for Harry & David Holdings? Medford company Harry & David has been controlled primarily by Wasserstein & Co. insiders, whose bonds were converted to equity shares when Harry & David emerged from Chapter 11 protection three years ago, laid it all out in a March filing with the Securities and Exchange Commission. The Long Island flower and gift company is buying Harry & David's 93-acre Medford campus, 1,684 acres of planted orchards, 685 undeveloped acres, 494,000 square feet of manufacturing and distribution space, a 72,000-square-foot call center, a 297,000-square-foot headquarters office, 316,000 square feet of warehouse and cold storage, and 40,000 square feet designated as "miscellaneous." As of March 29, Harry & David leased 137,200 square feet of retail space for its 47 stores. In Hebron, Ohio, the company owns 51 acres with 148,000 square feet of packaging, distribution and warehouse space, a call center and office of 55,000 square feet, and another 127,000 square feet of cold storage. In addition to that, Harry & David leases another 374,500 square feet of cold storage and warehouse space in Medford, a 26,500-square-foot call center in Eugene and a 45,000-square-foot warehouse in Hebron. » Social News A New York firm with a history of making the right moves at the right time is acquiring the Rogue Valley's largest manufacturing and agricultural enterprise in a $142.5 million deal. Harry & David Holdings, the iconic gift and gourmet food company known the world over for its Royal Riviera Comice pears and Moose Munch snacks, will become part of florist and gift retailer 1-800-Flowers.com Inc. The deal, announced Tuesday, includes Harry & David’s brands and websites as well as its South Pacific Highway headquarters, manufacturing and distribution facilities and orchards, a warehouse and distribution facility in Hebron, Ohio, along with 47 Harry & David retail stores located throughout the country. Harry & David’s current senior management team will remain with the business, which will become a wholly owned subsidiary of 1-800-Flowers. The deal is expected to close in October. Harry & David CEO Craig Johnson, who took the helm of the company when it emerged from Chapter 11 bankruptcy protection three years ago, referred questions to public relations firm Sard Verbinnen & Co. The New York firm served as Harry & David's buffer when Wasserstein & Co. took the company into bankruptcy. A Sard Verbinnen representative said it's too early to discuss the implications of integration on the company's present leadership team, its manufacturing or call center operations. "We are extremely pleased to be adding the iconic Harry & David name to our growing family of great gifting brands. Harry & David has steadily grown its top and bottom line for the past several years, with revenues reaching nearly $400 million in its most recent reported fiscal year," Jim McCann, CEO of 1-800-Flowers, said in a statement. McCann said the combined company will produce annual revenue of more than $1 billion. The price tag is about 43 percent less than the $252.9 million that Wasserstein & Co., along with another private-equity firm, Highfields Capital Management of Boston, paid Yamanouchi Pharmaceutical Co. 10 years ago. "It's a very different world than 2004," said University of Oregon finance professor Stephen McKeon. "In 2004, the financial crisis hadn't occurred yet, and the macro-economy overall is not what it used to be. When you see a company that was generally worth x-amount and now worth x-minus-$100-million, it's possibly because investors don't have the same outlook for a firm they once did." In Harry & David's case, competition, spending habits and the amount of disposable income come into play. "At the end of the day, those things hit a company's income statement," he said. McCann touted the acquisition as boosting his company's position as the leading destination for customers' celebratory and gifting occasions, and as significantly enhancing its offerings in the growing gourmet food and gift baskets market. "We believe there are some significant synergies, in terms of both operating costs and revenue growth opportunities, that will further enhance the value of the combined businesses in both the near term and in the years to come," McCann said in a statement. McKeon said the synergies McCann referenced make sense when companies acquire similar operations. "If a company that is acquired continues operating as an independent wholly owned subsidiary, you may see very little change," McKeon said. "In that case, the synergies come more on the revenue side, rather than in cost cutting." More typically, he said, companies find cost savings in eliminating duplicated operations such as accounting and legal departments. In 1-800-Flowers' case, Harry & David's voluminous customer files are potential cash cards. "You're able to access existing customers without having to do anything on the cost side," McKeon said. "The presumption is that Harry & David has the same types of customers as 1-800-Flowers would want and have a predisposition toward the products it is now offering. They can now access those customers through a brand they're already engaged with." In a statement issued through Business Wire on Tuesday morning, Johnson said the acquisition validates Harry & David's post-bankruptcy efforts. "This announcement is a clear endorsement of the remarkable work that our talented team has put in over the past several years to rebuild the iconic Harry & David brand," Johnson said. "I am confident that by joining forces, we will benefit by gaining access to a robust infrastructure, distribution network, global presence and enhanced resources, which will enable us to continue to cultivate and grow the one-of-a-kind Harry & David brand." Carle Place, N.Y.-based 1-800-Flowers.com said there was a lot to like about incorporating Harry & David into its empire, including a large customer database consisting of both consumers and corporate accounts; a website with significant and growing customer traffic; a unique collection of proprietary gift products and brands that engender strong customer loyalty; and a strong operational infrastructure consisting of geographically dispersed manufacturing, warehousing and distribution facilities. While its logistics networks are cutting-edge, Harry & David has struggled off and on to fill its call center positions, sometimes looking to Eugene or elsewhere. Given 1-800-Flowers' ability to fill that niche, there could be a seismic shift in the offing, but no hints were delivered Tuesday. In Jackson County, where unemployment still remains higher than national and state averages, even seasonal opportunities remain important. "Call centers are not known for high wages," McKeon said. "But for people with part-time availability or in places with fairly high unemployment, where people are just looking to draw a paycheck, it can have real value." Harry & David will join 1-800-Flowers' Fannie May, Cheryl's, Popcorn Factory, FruitBouquets, 1-800-Baskets.com and Stockyard.com lineup. In a sense, it's back to the future for Harry & David, which first went public as Bear Creek Corp. in 1976 and was then acquired by RJ Reynolds Corp. in January 1984 for $74.1 million. Shaklee Corp acquired Bear Creek for $123 million in 1986 and in turn was purchased by Yamanouchi Pharmaceutical Co. Ltd of Japan in 1989. Reach reporter Greg Stiles at 541-776-4463 or [email protected]. Follow him on Twitter at www.twitter.com/GregMTBusiness, on Facebook at https://www.facebook.com/greg.stiles.31, and read his blog at www.mailtribune.com/Economic Edge. By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Sep. 2, 2014 @ 5:45 pm Updated Sep 3, 2014 at 12:42 AM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. 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