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FTD agrees to buy ProFlowers

FTD agrees to buy ProFlowers

FTD

July 30, 2014To Our Valued Florists,We are pleased to announce that FTD has entered into an agreement to acquire Provide Commerce, enhancing our position as one of the leading and most trusted floral and gifting companies in the world. First and foremost, I want to assure you that we remain fully committed to our member florists, who will remain the backbone of FTD.The floral and gift industry continues to evolve – more than ever, the consumer is in control of where and how they shop. Quality offerings are more prominently positioned in grocery and mass market stores. In most every consumer category, consumers are migrating to e-commerce and mobile platforms. In the face of this changing landscape, it is our responsibility to attract as much consumer demand as possible to FTD, and subsequently, our member florists.Provide Commerce operates under several popular brands in the online floral and gifting category, including ProFlowers. ProFlowers offers floral arrangements that are direct shipped to consumers, as well as same day floral delivery. In addition to floral products, Provide also sells and markets several leading non-floral gifting brands, including Shari’s Berries and Personal Creations.We believe this transaction will be value creating for FTD, our member florists and the floral industry as a whole. Together, we can assure you, our marketing will be supportive of the floral industry and our member florists, we will attract a wider complement of consumers into our floral and gifting business, and we will have greater resources to dedicate towards the success of our member florists.Following the completion of this acquisition, we will take the following steps to directly benefit our member florists:

  • Following closing of this transaction, we expect to generate significant additional florist filled order volume for the FTD network. FTD member florists will have opportunities to receive increased order volume and additional customers to market to locally.
  • This acquisition will enhance our ability to invest in national brand advertising, which will showcase our member florists and FTD products. In addition, we plan to reintroduce our member florist local marketing program, formerly known as “FTD AdPlus,” designed to help you drive business in your local area.
  • We will continue to invest in our “best in class” Mercury Point of Sale and enhance member web sites, which will further drive traffic and local order volume. Both represent critical products for FTD florist members to more effectively manage and grow their businesses.
  • The acquisition will further enhance our roster of respected and established brands in the consumer gifting category, including the addition of Shari’s Berries and Personal Creations. As a consequence, FTD member florists will have access to these products through our wholesale catalogue and web gift program.
  • This acquisition will also strengthen our procurement and logistics capabilities, enabling us to provide our member florists with access to lower cost goods (both flower and container), thereby improving efficiency and order profitability.

I want to assure you that our support and dedication to you, our local member florists, will remain unchanged. You are, and will remain, the heart and soul of FTD, and we will continue to focus on supporting you over the long-term, providing you with services that are designed to elevate your store’s reputation and promote revenue growth.

Our members will continue to have access to our iconic Mercury Man logo, an internationally recognized symbol of excellence displayed in nearly 40,000 dedicated florist shops in 150 countries around the world. Our mission is to inspire and delight our customers when expressing life’s most important sentiments and this acquisition will serve us well in this pursuit.

This acquisition is not expected to close until later this year – we will provide you with additional updates as we progress further. I have the utmost confidence that the integration process will be smooth and streamlined, with minimal to no interruption for member florists.

We sincerely thank you, again, for your continued support of FTD. We look forward to embarking on this exciting new chapter of FTD’s storied history alongside our member florists.

Best regards,
Rob Apatoff, President and Chief Executive Officer
Rob Apatoff
President & Chief Executive Officer
FTD Companies, Inc.

 

Additional Information
FTD will solicit the required approval of its stockholders by means of a proxy statement, which will be mailed to stockholders upon completion of the required Securities and Exchange Commission (SEC) filing and review process. The proxy statement will contain information about FTD, Provide Commerce, the proposed transaction and related matters. FTD stockholders are urged to read the proxy statement carefully when it is available, as it will contain important information that stockholders should consider before making a decision about the transaction. In addition to receiving the proxy statement from FTD in the mail, stockholders will also be able to obtain the proxy statement, as well as other filings containing information about FTD, without charge, at the SEC’s web site, www.sec.gov, or from FTD at its website, www.ftdcompanies.com, or FTD Companies, Inc., 3113 Woodcreek Drive, Downers Grove, IL 60515, Attention: Corporate Secretary.

Participants in Solicitation
FTD and its executive officers and directors may be deemed to be participants in the solicitation of proxies from FTD’s stockholders with respect to the proposed transaction. Information regarding any interests that FTD’s executive officers and directors may have in the transaction will be set forth in the proxy statement.

10 Comments

  • Here was a comment via linkin from a retailer

    Today our friends at FTD announced their plans to join with the parent company of ProFlowers. The president of FTD told us, as retail florists, that this move will help us with lowered costs and more business and more customers to recruit. This is an interesting spin on their building on a huge volume of flowers shipped directly to the consumer and by-passing the traditional retail florist. I believe that this letter belongs right up there with ” Hi, I’m here from the I.R.S. and I’m here to help.”

  • If I heard this correctly United Online which owns FTD also owned a % of Provide Commerce (Proflowers ) so they must have convinced some other investors to agree to vote for this move.

  • Dear BloomNet Professional Florist,

    I’m sure you have heard about the recent announcement regarding the planned merger between FTD and Provide Commerce. As you probably know, Provide Commerce is the parent company of several brands including ProFlowers, Shari’s Berries and Personal Creations. It is our belief that this merger may serve to close some doors of opportunity for retail florists while eroding what has always been the lifeblood of the floral industry: the special relationships neighborhood florists have with the communities they serve.

    I am proud to say that BloomNet has always been, and remains, dedicated to helping florists nurture and build lasting relationships with customers through the superior service and unique products only a local florist can deliver. After all, this is our heritage as a floral business founded and operated by florists.

    Among the many innovative ways we are generating order opportunities and enhancing revenue potential for BloomNet Florists is through our new and exciting Local Exclusive Florist Designed Program which showcases florists’ own truly original floral arrangements and gift & gourmet products on the
    1-800-FLOWERS.COM website. BloomNet is the first and only wire service to support our network of florists with such a value-added program, celebrating the creativity of local designers and at the same time leveling the playing field by providing local florists and their products with the same exposure as
    1-800-FLOWERS.COM products offered in the florist’s delivery zip code.

    What’s more, BloomNet Florists have access to take advantage of our extensive family of gourmet products today’s consumers want – for instance Fruit Bouquets, chocolates and gift baskets through our wholesale offerings, providing additional revenue opportunities for you to grow your retail business and provide your customers with world-class floral & gift offering.

    And, BloomNet is also focused on the future of the floral industry through continuing education and building community, embodied by our state-of-the art Floriology Institute in Jacksonville, Florida along with the expansion of our “on the road” educational events throughout the country.

    Thank you for being a vital part of the BloomNet family of highly talented and passionate local retail florists. As always, we are committed to the long term growth of the floral industry, because just like you, we are retail florists and remain steadfast in our belief that the future success and growth of our industry lies with the quality, value and service provided by local retail florists.

    BloomNet is committed to working closely with you to explore the widest range of opportunities to grow your business. Please don’t hesitate to contact us if we can help answer any of your questions or be of support. Thank you for your continued dedication as BloomNet Professional Florists.

    Mark Nance, AAF
    President, BloomNet

  • SAF CEO Peter Moran agreed but said he was willing to speculate that Proflowers’ long history of disparaging brick and mortar florists in its ads during high volume floral holidays may come to an end, now that it’s “owned by a company that represents thousands of retail florists.”

  • Curious about the growers take on this move. Will this force larger growers to set up their own farm /retail consumer direct business model ? It has to be considered. I can see 2-4 large growers consolidating and building a consumer sales business.

  • This is really big news. If I were a retailer I am not sure how I would feel about this move. While it may be a good thing for FTD I just can’t see where it is a benefit to a florist to have FTD sending flowers direct to consumers. But I imagine they were doing this anyway.

    • I am not a FTD lover, but I really do not see how it changes much of anything for a FTD florist……as you stated, they were already in the direct ship market anyway (flowers/plants/gifts/gift baskets). There were 3 direct to consumer shippers (ProFlowers, FTD, 800Flowers), and now number 2 buys number 1. I wonder is they will keep the ProFlower brand separate from the FTD Brand, when it comes to direct ship.

  • It will be interesting to hear Teleflora’s “spin” on this, since they were the wire service that was filling the ProFlowers “same day” flower/plant orders.

  • interesting. as a “brand”, I think ProFlowers was burning the candle from both ends. IMO, their source of new 1st time customers were slowing down, and I would guess that their customer retention is pretty bad. I say that based on friends of friends that have tried the ProFlowers “flowers in a box”, and their experience was shitty.

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