Carle Place-based online florist and gift retailer 1-800-Flowers.com said it plans to acquire PersonalizationMall.com — an online seller of personalized gifts such as coffee mugs and blankets — from home goods retailer Bed Bath & Beyond for $252 million.
The deal comes four years after Chicago-based Bed Bath & Beyond acquired PersonalizationMall for about $190 million.
The company "will be an excellent addition to our growing family of popular gifting brands," Chris McCann, chief executive of 1-800-Flowers, said in a statement Tuesday.
PersonalizationMall has achieved steady financial growth for several years, with revenue of more than $150 million in its most recent fiscal year.
1-800-Flowers expects the deal to boost the company's "top and bottom-line results in fiscal 2021," McCann said. 1-800-Flowers posted $1.25 billion in sales in fiscal year 2019.
In recent years, 1-800-Flowers has grown its business through a series of e-commerce site launches and acquisitions. It bought Oregon-based gift-basket retailer Harry & David in 2014, and in 2017 launched Personalization Universe, a gift personalization site where customers can have items engraved, embroidered, monogrammed, etched and printed.
In 2018, the company launched Goodsey.com, a site offering products ranging from home decor to jewelry and personal care items. And last year, the company announced its purchase of FTD's Shari's Berries — a seller of chocolate-dipped strawberries and other sweets — for $20.5 million.
1-800-Flowers had been following PersonalizationMall's business with interest for years, a 1-800-Flowers spokeswoman said Wednesday. The company sees "significant opportunities to expand personalization of various product offerings throughout its portfolio of brands by leveraging PersonalizationMall.com's unique capabilities and expertise," she said.
The Personalization Universe brand will continue to operate "as we determine the ultimate path forward," she said.
The acquisition includes the PersonalizationMall.com website and its new, 360,000-square-foot production and distribution facility in Bolingbrook, Illinois. PersonalizationMall.com will become a wholly owned subsidiary of 1-800-Flowers.com Inc.
1-800-Flowers "has been benefiting from a good economy and the increased interest in everyday gifting by consumers," said Michael Kupinski, an analyst at Boca Raton, Florida-based investment banking firm Nobel Capital Markets, who has followed the company for about 10 years.
With this acquisition "the company will distance itself from its peers which will struggle to match the breadth of its gifting brands," Kupinski said.
The company’s brands also include 1-800-Baskets.com, Cheryl’s Cookies, FruitBouquets.com, Moose Munch popcorn and The Popcorn Factory. Its shares closed up 1.4%, or 24 cents, to $18.02 on Wednesday. The stock climbed almost a dollar per share on Tuesday after the deal was announced.