FTD buying Interflora
- Thread starter Ken
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I dont think so!!
July 07, 2006 07:15 AM US Eastern Timezone
FTD Group, Inc. Announces Agreement to Purchase Interflora Holdings Limited
DOWNERS GROVE, Ill.--(BUSINESS WIRE)--July 7, 2006--FTD Group, Inc. (NYSE:FTD):
-- Interflora is a Leading Provider of Floral Services and Products in the United Kingdom
-- Complementary U.K. Florist and Consumer Businesses, Similar to FTD's Business Model
-- Base for FTD's Business Expansion Into Other European Countries
-- Transaction Anticipated to Be Accretive in Fiscal Year 2007
FTD Group, Inc. (NYSE:FTD), a leading provider of floral services and products, today announced that it has entered into an agreement to acquire Interflora Holdings Limited, a U.K. based provider of floral-related products and services to consumers and retail floral locations in the U.K. floral retail market, for approximately GBP 66 million, or $121 million at the current foreign currency exchange rate. The acquisition, which is subject to the satisfaction of certain conditions (including Interflora's members' right to match FTD's offer), is expected to close on July 31st, 2006.
Interflora is a globally recognized brand and utilizes the same Mercury Man logo as FTD. Similar to the business model of FTD, Interflora provides various products and services to its 1,800 member florists, and also markets flowers direct to consumers in the U.K. through both a toll-free telephone number and the Web at www.interflora.co.uk. Founded in 1923 and previously operated as an unincorporated association, Interflora incorporated in February 2005 and began running as a "for-profit" organization. Under accounting principles generally accepted in the U.K., annual revenues for Interflora's fiscal year ended May 31, 2006 are estimated to be GBP 63 million, or $112 million at the average foreign currency exchange rate for the period, representing a growth rate of approximately 20% from the prior year period. Additionally, for the fiscal year ended May 31, 2006, Interflora's profit and earnings before net interest expense, taxation on profit on ordinary activities, depreciation and amortization ("EBITDA") are estimated at GBP 3.1 million and GBP 7.6 million, respectively, or $5.4 million and $13.5 million, respectively, at the average foreign currency exchange rate for the period. The above estimates for the fiscal year ended May 31, 2006 may be exceeded or, alternatively, may not be achieved. A table reconciling estimated profit for the year ended May 31, 2006 to EBITDA along with explanations and definitions of EBITDA, is attached. The Company believes EBITDA is useful and relevant as it provides supplemental information related to Interflora's operations and results as it is used as a performance measure in management incentive compensation plans that are being established for Interflora management and it was used in determining the purchase price to be paid for the capital stock of Interflora.
It is anticipated that the transaction will be financed through a $225 million senior secured credit facility consisting of a $150 million term loan and $75 million revolving credit facility to be provided by Wells Fargo. As part of the transaction, FTD will refinance its existing bank debt; however, the existing senior subordinated notes will remain outstanding. Upon consummation of the transaction, FTD expects to have total debt of approximately $345 million.
Based upon Interflora's estimated results of operations for the fiscal year ended May 31, 2006 and the current trends in Interflora's business, the Company presently expects the acquisition to be accretive to fiscal year 2007 earnings.
"Interflora's business model is very similar to ours. The company has only been operating in its present form for about a year and a half and the management team has done an excellent job of driving growth and increasing profitability," stated Michael Soenen, Chief Executive Officer of FTD. "As the company continues its development we believe that we can leverage our marketing and technology experience to help drive growth, decrease operating costs and accelerate the development of new products for member florists. Further, we believe that this will serve as our base for expanding into other European countries. The management team, led by Steve Richards, Chief Executive Officer of Interflora, will remain in place and the company will be managed as a stand alone entity."
"We are excited at the opportunities ahead of us," said Mr. Richards. "The acquisition will allow us to accelerate our growth, reduce our costs and increase the value we bring to member florists. Additionally, I believe the Company's international growth has been under-developed and I look forward to driving our entry into new markets."
ABOUT FTD GROUP, INC.
FTD Group, Inc. is a leading provider of floral-related products and services to consumers and retail floral locations in the U.S. floral retail market. The business is supported by the highly recognized FTD brand, which was established in 1910 and enjoys 96% brand recognition among the Company's principal target market of U.S. consumers between the ages of 25 and 64, as well as by the Mercury Man logo, which is displayed in approximately 50,000 floral shops, globally. The Company conducts its business through two operating segments. The Consumer Segment, primarily through the www.FTD.COM Web site and the 1-800-SEND-FTD toll-free telephone number, offers same-day delivery of floral orders to nearly 100% of the U.S. and Canadian populations. As a result of the same-day delivery capability and broad product selection, the Consumer Segment is one of the largest direct marketers of floral arrangements and specialty gifts in the U.S. The Florist Segment provides a comprehensive suite of products and services to enable the network of approximately 19,000 FTD members to send and deliver floral orders. This suite of products and services is designed to promote revenue growth and enhance the operating efficiencies of FTD members.
July 07, 2006 07:15 AM US Eastern Timezone
FTD Group, Inc. Announces Agreement to Purchase Interflora Holdings Limited
DOWNERS GROVE, Ill.--(BUSINESS WIRE)--July 7, 2006--FTD Group, Inc. (NYSE:FTD):
-- Interflora is a Leading Provider of Floral Services and Products in the United Kingdom
-- Complementary U.K. Florist and Consumer Businesses, Similar to FTD's Business Model
-- Base for FTD's Business Expansion Into Other European Countries
-- Transaction Anticipated to Be Accretive in Fiscal Year 2007
FTD Group, Inc. (NYSE:FTD), a leading provider of floral services and products, today announced that it has entered into an agreement to acquire Interflora Holdings Limited, a U.K. based provider of floral-related products and services to consumers and retail floral locations in the U.K. floral retail market, for approximately GBP 66 million, or $121 million at the current foreign currency exchange rate. The acquisition, which is subject to the satisfaction of certain conditions (including Interflora's members' right to match FTD's offer), is expected to close on July 31st, 2006.
Interflora is a globally recognized brand and utilizes the same Mercury Man logo as FTD. Similar to the business model of FTD, Interflora provides various products and services to its 1,800 member florists, and also markets flowers direct to consumers in the U.K. through both a toll-free telephone number and the Web at www.interflora.co.uk. Founded in 1923 and previously operated as an unincorporated association, Interflora incorporated in February 2005 and began running as a "for-profit" organization. Under accounting principles generally accepted in the U.K., annual revenues for Interflora's fiscal year ended May 31, 2006 are estimated to be GBP 63 million, or $112 million at the average foreign currency exchange rate for the period, representing a growth rate of approximately 20% from the prior year period. Additionally, for the fiscal year ended May 31, 2006, Interflora's profit and earnings before net interest expense, taxation on profit on ordinary activities, depreciation and amortization ("EBITDA") are estimated at GBP 3.1 million and GBP 7.6 million, respectively, or $5.4 million and $13.5 million, respectively, at the average foreign currency exchange rate for the period. The above estimates for the fiscal year ended May 31, 2006 may be exceeded or, alternatively, may not be achieved. A table reconciling estimated profit for the year ended May 31, 2006 to EBITDA along with explanations and definitions of EBITDA, is attached. The Company believes EBITDA is useful and relevant as it provides supplemental information related to Interflora's operations and results as it is used as a performance measure in management incentive compensation plans that are being established for Interflora management and it was used in determining the purchase price to be paid for the capital stock of Interflora.
It is anticipated that the transaction will be financed through a $225 million senior secured credit facility consisting of a $150 million term loan and $75 million revolving credit facility to be provided by Wells Fargo. As part of the transaction, FTD will refinance its existing bank debt; however, the existing senior subordinated notes will remain outstanding. Upon consummation of the transaction, FTD expects to have total debt of approximately $345 million.
Based upon Interflora's estimated results of operations for the fiscal year ended May 31, 2006 and the current trends in Interflora's business, the Company presently expects the acquisition to be accretive to fiscal year 2007 earnings.
"Interflora's business model is very similar to ours. The company has only been operating in its present form for about a year and a half and the management team has done an excellent job of driving growth and increasing profitability," stated Michael Soenen, Chief Executive Officer of FTD. "As the company continues its development we believe that we can leverage our marketing and technology experience to help drive growth, decrease operating costs and accelerate the development of new products for member florists. Further, we believe that this will serve as our base for expanding into other European countries. The management team, led by Steve Richards, Chief Executive Officer of Interflora, will remain in place and the company will be managed as a stand alone entity."
"We are excited at the opportunities ahead of us," said Mr. Richards. "The acquisition will allow us to accelerate our growth, reduce our costs and increase the value we bring to member florists. Additionally, I believe the Company's international growth has been under-developed and I look forward to driving our entry into new markets."
ABOUT FTD GROUP, INC.
FTD Group, Inc. is a leading provider of floral-related products and services to consumers and retail floral locations in the U.S. floral retail market. The business is supported by the highly recognized FTD brand, which was established in 1910 and enjoys 96% brand recognition among the Company's principal target market of U.S. consumers between the ages of 25 and 64, as well as by the Mercury Man logo, which is displayed in approximately 50,000 floral shops, globally. The Company conducts its business through two operating segments. The Consumer Segment, primarily through the www.FTD.COM Web site and the 1-800-SEND-FTD toll-free telephone number, offers same-day delivery of floral orders to nearly 100% of the U.S. and Canadian populations. As a result of the same-day delivery capability and broad product selection, the Consumer Segment is one of the largest direct marketers of floral arrangements and specialty gifts in the U.S. The Florist Segment provides a comprehensive suite of products and services to enable the network of approximately 19,000 FTD members to send and deliver floral orders. This suite of products and services is designed to promote revenue growth and enhance the operating efficiencies of FTD members.
Ftd can't run the company they have well enough here in the US. So in typical fashion they will ruin another company!! I think it's a JOKE!! And who will suffer most of all, are the consumers & florists of the UK.
Let the warning flag fly in London. The Americans are coming!!!!
Rob
Let the warning flag fly in London. The Americans are coming!!!!
Rob
Sheesh - couldn't you see this coming a mile away when the Interflora UK members sold out a year or so ago?
Doesn't look like the transition from member-owned to for-profit has been too rosy in the UK either. Commissions went from 16% to 25% by my reading of the thread. (Note how that UK message board sounds a lot like the conversations at FC.)
Doesn't look like the transition from member-owned to for-profit has been too rosy in the UK either. Commissions went from 16% to 25% by my reading of the thread. (Note how that UK message board sounds a lot like the conversations at FC.)
The question to ask is; Who do you think will fund the debt to buy this new addition? 1,800 UK members?
Nope, how about 18,000 US florists. I can see the new heavy duty membership fee increases now! All in the name of FTD providing better, new improved quality services to it's members. (yeah right!)
Lets see if FTD can push their debt to over 400 million before the end of the year!
When will the madness stop?
Like I said, WHAT A JOKE!!!
Nope, how about 18,000 US florists. I can see the new heavy duty membership fee increases now! All in the name of FTD providing better, new improved quality services to it's members. (yeah right!)
Lets see if FTD can push their debt to over 400 million before the end of the year!
When will the madness stop?
Like I said, WHAT A JOKE!!!
Gee, you would htink they had the money already with the 6 fleurin they kept with every order they sent to any teleflora member.
345 million dollars in debt, but put a florist in debt for 30,000.00 beside and the bank panics....
Yes I can see increase in membership dues....
Luc
345 million dollars in debt, but put a florist in debt for 30,000.00 beside and the bank panics....
Yes I can see increase in membership dues....
Luc
Mikey the Flower Guy
It's a GREAT DAY to live, and love!
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I think.....
FTD is about to embark on a "journey" that MIGHT JUST SURPRISE you'all.....and it's NOT for the faint of heart, and it IS for those of you that think big AND outside the box!!
FTD is about to embark on a "journey" that MIGHT JUST SURPRISE you'all.....and it's NOT for the faint of heart, and it IS for those of you that think big AND outside the box!!
BOSS
FlowerChat Administrator
I agree with Mikey (imagine thatMikey the Flower Guy said:
).....I don;t remember all the little things about this deal, but if I remember right, FTDinc was prohibited from advertising and using the FTD logo and marks outside of North America by some rule/agreement set up decades long past when Interflora was launched. This purchase, even though it is buying debt basically will enable FTD to go world wide with their B2C marketing and everything that goes with it...
Someone more in the know can correct me if I'm mistaken....
Mikey the Flower Guy
It's a GREAT DAY to live, and love!
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Tom.....
you'all sound like you've just jumped off a bucking bronc, and you're heart is still racing.
This "purchase" is NOT what you "think" it is........
See the box...open it....it actually gets bigger!
FTD is "opening" this box for a reason, and it's NOT the "Pandora" contained within IF you are an optimist!!
you'all sound like you've just jumped off a bucking bronc, and you're heart is still racing.
This "purchase" is NOT what you "think" it is........
See the box...open it....it actually gets bigger!
FTD is "opening" this box for a reason, and it's NOT the "Pandora" contained within IF you are an optimist!!
12BucksFor2Dozon
New Member
It's all about scale in corporate america...it always amazes me that these companies can lose tens of millions of dollars in a year, yet turn around and spend $120 million to buy a business that is similar?? they are just trying to buy customers so they can convince the world's flower buying public to skip the local florist and drop-ship the gift instead.
Must be nice spending the shareholders dough all the time...
Must be nice spending the shareholders dough all the time...
Mikey - I admire your optimism but my crystal ball sees spam across the water. Imagine all the OGs on both sides of the pond flooding the web with even more 'local' pages.
Novator has been hosting local shop sites for Interflora UK for quite a few months. Expect shopping using pounds and dollars for all.
Novator has been hosting local shop sites for Interflora UK for quite a few months. Expect shopping using pounds and dollars for all.
12BucksFor2Dozon
New Member
Uhhhhgg! What a thought to go to sleep to...nightmares here I come. And "spam across the water"?...wasnt that a Beatles song?CHR said:
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