1-800-FLOWERS.COM announced the signing of a definitive agreement to acquire Harry & David Holdings.

The company secured committed funding for the acquisition from JP Morgan Chase and Wells Fargo Bank. The acquisition is expected to close in October 2014, subject to the satisfaction of customary closing conditions, including regulatory approval. Wells Fargo Securities is serving as exclusive financial advisor to 1-800-FLOWERS.COM, and Centerview Partners and Piper Jaffray are serving as financial advisors to Harry & David Holdings. Cahill Gordon & Reindel and Jones Day are serving as legal counsel for 1-800-FLOWERS.COM, and Harry & David Holdings, respectively.

The acquisition, for $142.5 million in cash, includes Harry & David’s brands and websites as well as its headquarters, manufacturing and distribution facilities and orchards in Medford, OR, a warehouse and distribution facility in Hebron, OH, and 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.COM, Inc.

Jim McCann, CEO of 1-800-FLOWERS.COM, said, “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. This combination will increase our total annual revenue to more than $1 billion and add to our EBITDA, EPS and free cash flow. It also further extends our position as the leading destination for all of our customers’ celebratory and gifting occasions and significantly enhances our gift offering in the growing Gourmet Food and Gift Baskets space.”

“We are thrilled to be joining the 1-800-FLOWERS.COM family,” said Craig Johnson, Harry & David’s CEO. “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. 1-800-FLOWERS.COM is a phenomenal organization, which shares our commitment to providing inspiring and innovative premium-quality products and exceptional service to customers. 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.”

1-800-FLOWERS.COM is a florist and gift shop.