After a 41-year-old partnership, Harry & David Holdings announced last week that it is selling its rose-growing and wholesale unit, Jackson & Perkins, to two unaffiliated buyers for an aggregate of $49 million, of which $46 million is payable in cash at closing. Florida horticulture investors Donald and Glenda Hachenberger have agreed to purchase the Jackson & Perkins brand, E-commerce Web site, catalog and associated inventory, while a private investment group is buying the company’s 3,200 acres, buildings and equipment in Wasco, Calif.
Harry & David Holdings has agreed to provide certain transitional services, including agricultural and horticultural services through the end of June 2007, certain wholesale operational services during 2007 and certain direct marketing operational services and rose fulfillment through the end of June 2008.
The deals are set to close by June 30, 2007, but could be wrapped up in April or early May, according to Bill Williams, Harry & David president and chief executive officer. None of the local Jackson & Perkins employees will be immediately affected, he said to the Mail Tribune.
“The decision to divest Jackson & Perkins was made only after careful consideration of its strategic fit with our core gift and gourmet food businesses,” said Williams. “Having determined that it did not fit with our long-term goals, we are pleased that this divestiture will allow us to focus on our core businesses and further strengthen our financial position.”
Jackson & Perkins was founded in 1872 and is a large marketer of premium rose plants. It produced approximately $74 million in sales during the past 12 months, about 12 percent of Harry & David’s revenue in that period.